Upload
shivalya-mehta
View
227
Download
2
Embed Size (px)
Citation preview
PROJECT REPORT
ON
MARKETING STRATEGY OPTED BY THE APOLLO TYRES
UNDER THE GUIDANCE OF SUBMITTED BY Mr Sumit chakki shivalya mehtaMM UNIVERSITY AMBALA ODL074032859
MBA
SESSION 2011-2012
TO WHOM SO EVER IT MAY CONCERN
This is to certify that the project work title ldquoMarketing strategy opted by the Apollo
Tyres rdquo by SHIVALYA MEHTA ODL074032859 is an authentic work carried out
by him under my guidance and supervision in the Bachelor of Business
Administration From MM UNIVERSITYAMBALA The report submitted has been
founded satisfactory for the partial fulfillment of the degree of MBA
-------------------------
DR SK SENAPATI
(PROJECT SUPERVISOR)
1
STUDENT DECLARATION
I here by certify that the project report entitled on ldquoMarketing strategy opted by the
Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award
degree of Master in business from MM UNIVERSITY AMBALA is my original
work and not submitted or the award of any other degree diploma fellowship or any
other similar title or prizes anywhere else
SHIVALYA MEHTA ENROLLMENT NO
ODL074032859
2
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report I am grateful to all of them for their
time energy and wisdom
Getting a project ready requires the work and effort of many people I would like all
those who have contributed in completing this project First of all I would like to
send my sincere thanks to DR SK SENAPATI for his helpful hand in the
completion of my project
Shivalya MehtaMBA
3
TOPIC CONTENT
INTRODUCTION 1
COMPANY PROFILE25
LITERATURE REVIEW41
RESEARCH METHODOLOGY57
FINDING AND ANALYSIS59
CONCLUSION71
RECOMMENDATION73
BIBLIOGRAPHY75
ANNEXURE ndash QUESTIONNAIRE76
4
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
-------------------------
DR SK SENAPATI
(PROJECT SUPERVISOR)
1
STUDENT DECLARATION
I here by certify that the project report entitled on ldquoMarketing strategy opted by the
Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award
degree of Master in business from MM UNIVERSITY AMBALA is my original
work and not submitted or the award of any other degree diploma fellowship or any
other similar title or prizes anywhere else
SHIVALYA MEHTA ENROLLMENT NO
ODL074032859
2
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report I am grateful to all of them for their
time energy and wisdom
Getting a project ready requires the work and effort of many people I would like all
those who have contributed in completing this project First of all I would like to
send my sincere thanks to DR SK SENAPATI for his helpful hand in the
completion of my project
Shivalya MehtaMBA
3
TOPIC CONTENT
INTRODUCTION 1
COMPANY PROFILE25
LITERATURE REVIEW41
RESEARCH METHODOLOGY57
FINDING AND ANALYSIS59
CONCLUSION71
RECOMMENDATION73
BIBLIOGRAPHY75
ANNEXURE ndash QUESTIONNAIRE76
4
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
STUDENT DECLARATION
I here by certify that the project report entitled on ldquoMarketing strategy opted by the
Apollo Tyres rdquo Submitted in partial fulfillment of the requirement for the award
degree of Master in business from MM UNIVERSITY AMBALA is my original
work and not submitted or the award of any other degree diploma fellowship or any
other similar title or prizes anywhere else
SHIVALYA MEHTA ENROLLMENT NO
ODL074032859
2
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report I am grateful to all of them for their
time energy and wisdom
Getting a project ready requires the work and effort of many people I would like all
those who have contributed in completing this project First of all I would like to
send my sincere thanks to DR SK SENAPATI for his helpful hand in the
completion of my project
Shivalya MehtaMBA
3
TOPIC CONTENT
INTRODUCTION 1
COMPANY PROFILE25
LITERATURE REVIEW41
RESEARCH METHODOLOGY57
FINDING AND ANALYSIS59
CONCLUSION71
RECOMMENDATION73
BIBLIOGRAPHY75
ANNEXURE ndash QUESTIONNAIRE76
4
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
ACKNOWLEDGEMENT
I would like to take an opportunity to thank all the people who helped me in collecting
necessary information and making of the report I am grateful to all of them for their
time energy and wisdom
Getting a project ready requires the work and effort of many people I would like all
those who have contributed in completing this project First of all I would like to
send my sincere thanks to DR SK SENAPATI for his helpful hand in the
completion of my project
Shivalya MehtaMBA
3
TOPIC CONTENT
INTRODUCTION 1
COMPANY PROFILE25
LITERATURE REVIEW41
RESEARCH METHODOLOGY57
FINDING AND ANALYSIS59
CONCLUSION71
RECOMMENDATION73
BIBLIOGRAPHY75
ANNEXURE ndash QUESTIONNAIRE76
4
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
TOPIC CONTENT
INTRODUCTION 1
COMPANY PROFILE25
LITERATURE REVIEW41
RESEARCH METHODOLOGY57
FINDING AND ANALYSIS59
CONCLUSION71
RECOMMENDATION73
BIBLIOGRAPHY75
ANNEXURE ndash QUESTIONNAIRE76
4
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
INTRODUCTION
INDUSTRY ANALYSIS
Over a period of more than two decades the Indian Automobile Industry has
been driving its own growth through phases The entry of Suzuki Corporation
in Indian passenger car manufacturing is often pointed as the first sign of
India turning to a market economy Since then the automobile sector
witnessed rapid growth year after year By late-90s the industry reached self
reliance in engine and component manufacturing from the status of large
scale importer
With comparatively higher rate of economic growth rate index against that of
great global powers India has become a hub of domestic and exports
business
The automobile sector has been contributing its share to the shining economic
performance of India in the recent years With the Indian middle class earning
higher per capita income more people are ready to own private vehicles
including cars and two-wheelers Product movements and manned services
have boosted in the sales of medium and sized commercial vehicles for
passenger and goods transport
The data obtained from Ministry of Commerce and Industry shows high
growth obtained since 2001-02 in automobile production continuing in the first
three quarters of the 2004-05 Annual growth was 160 per cent in April-
December 2004 the growth rate in 2003-04 was 151 per cent The
automobile industry grew at a compound annual growth rate (CAGR) of 22
per cent between 1992 and 1997
With investment exceeding Rs 50000 crore the turnover of the automobile
industry exceeded Rs 59518 crore in 2002-03 Including turnover of the
auto-component sector the automotive industrys turnover which was above
Rs 84000 crore in 2002-03 is estimated to have exceeded Rs100000
crore ( USD 22 74 billion) in 2003-04
Automobile Dealers Network in India
5
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
In terms of Car dealer networks and authorized service stations Maruti leads
the pack with Dealer networks and workshops across the country The other
leading automobile manufacturers are also trying to cope up and are opening
their service stations and dealer workshops in all the metros and major cities
of the country Dealers offer varying kind of discount of finances who in tern
pass it on to the customers in the form of reduced interest rates
Major Manufacturers in Automobile Industry
Maruti Udyog Ltd
General Motors India
Ford India Ltd
Eicher Motors
Bajaj Auto
Daewoo Motors India
Hero Motors
Hindustan Motors
Hyundai Motor India Ltd
Royal Enfield Motors
Telco
TVS Motors
DC Designs
Swaraj Mazda Ltd
6
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Major Players in Tyre Industry
MRF
A leading company in the tyre industry MRF Ltd boasts of an enviable track
record The company has continued in the same vein and has been posting
excellent results notwithstanding the winds of recession blowing across the
economy Performance of the company has been commendable in light of the
fact that the user industry is facing a slowdown The company has benefited
from better productivity and operational efficiency The company caters to a
host of impressive clients It has signed on to be the sole supplier for auto
giants like General Motors Fiat and Ford in India The company is also
renowned for its exports which have also been witnessing positive growth
The company has recently entered the radial tyre segment and has met with
positive response The performance of the company could further improve
with the revival of the auto industry Thus MRF Ltd can be expected to retain
its position in this segment However investors can move out of the scrip
considering the outlook for the industry as a whole
CEAT
Being the second largest selling brand in India with a market share of 146 per
cent Ceat caters primarily to the replacement market Due to the strong
growth in the OEM sector the share of the replacement market in the total
revenue of the company has fallen However the production growth in the
automobile sector over the past few years should provide a boost to the
replacement market in the coming years and Ceat could be a major
beneficiary thereof With the advent of multinationals like Goodyear Michelin
Bridgestone and Continental a major shakeout in the industry is imminent
and the same could result in Ceat which is already operating on thin margins
being hived off as a joint venture with Goodyear in collaboration with which
Ceat has already promoted South Asia Tyres for manufacturing radial tyres in
India With a modest track record on the financial front the forthcoming
results may not be encouraging
7
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Apollo Tyres Limited
A slow-down in the tyre market and rubber procurement at high prices has put
the brakes on Apollo Tyres Limited (ATL) The company has traditionally been
the market leader in the truck and bus tyres segments ATL caters to the
replacement segment of the domestic market Following its take over of
Premier Tyres ATLs market share has risen Besides the core truck and bus
tyre business fairly considerable part of its turnover comes from automotive
tubes and flaps for which it has commissioned a plant in Pune Despite a
reversal in the fortune of the automobile industry the chief user base of the
companyrsquos products the demand for truck tyres particularly in the
replacement market was not encouraging Even as tyre producers grapple
with over-capacity and high levels of inventory the government stirred a
hornetrsquos nest by proposing free imports of used and second-hand tyres ATL
has conversion agreements for small tyres with TCIL Stallino Tyres and
Rado Its exports are routed through Apollo International to the US Germany
Brazil Sudan Egypt etc A well-entrenched posend this article to a
friendsition in the replacement market favours ATL and the declining price
trend of key inputs like natural rubber and carbon black may provide relief to
its wafer-thin margins At the current price level the scrip has emerged as
an attractive buy thus accumulate its shares in small lots
Tyres for 2007-08 2008-09 Change
Truck amp Bus 13137 12839 (-)2
Passenger Car 16437 16570 1
Jeep 1467 1469 02
Light Commercial Vehicle 5320 5298 (-)04
Tractor Front 1814 1842 2
Tractor Rear 1234 1315 7
8
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Tractor Trailer 886 758 (-)14
Animal Drawn Vehicle 409 281 (-)31
Scooter Moped 11604 10883 (-)6
Motor Cycle 27921 30148 8
Industrial 733 568 (-)23
Off the Road (OTR) 141 136 (-)4
Total 81103 82107 1
Apollo Tyres Ltd is considering building a greenfield tyre plant in south India It
is looking at Tamil Nadu and Andhra Pradesh as options According to Onkar
S Kanwar Apollos vice chairman and managing director The project outlay
will be around Rs 300 crore and the plant capacity will be 100 tonnes per
day The project will be funded out of internal accruals and term loans
Kanwar rules out any equity infusion It may be recalled that Apollo Tyres
recently issued partly convertible debentures to the promoters
According to Mr Kanwar the proposed facility will roll out truck and bus (radial
and bial) and earthmoving equipment tyres Further if negotiations with
Hyundai Motors (India) Ltd for original equipment supplies succeed the plant
will also roll out car radials The new investment is part of the Rs 400 crore
investment announced by the company recently The company commissioned
its Rs 80 crore 1 lakh tyres per annum capacity car radial tyres plant at
Baroda this January
For Apollo Tyres a plant in Chennai makes economic sense The company
would be able to cut freight costs while supplying to Ashok Leyland (truck
tyres) Tafe (tractor rear tyres) and Hindustan Motors Ltd for its earthmoving
equipment -- all of whom are located in and around Chennai -- and also for
catering to the southern replacement market Currently Apollo Tyres has two
9
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
facilities in Kerala from where the southern demand is met The south
accounts for 15-18 per cent of the countrys total truck tyre market according
to Mr Kanwar
The peaceful labour environment in Tamil Nadu would help Apollo Tyres The
company has had serious labour problems at its plants The company can
control costs better with its own new facility -- it is currently outsourcing a
sizeable number of tyres from the Tyre Corporation of India Ltd S Kumars
Stallion And since Chennai is a port city exports too will become
competitive
Adds Neeraj Kanwar chief manufacturing and strategic planning at Apollo
Tyres We are studying the economics - incentives sales tax exemptions
etc - of locating the unit in Chennai and Andhra Pradesh The new facility
wherever it may come up will boost Apollo Tyres capacity from the current
levels of 244 million tyres annually
In the meanwhile Apollo Tyres talks with Continental AG remain
inconclusive When asked about these negotiations which could result in the
German company taking a 15 per cent stake in the Indian tyre makers equity
Onkar S Kanwar says The final decision will be taken in three months
The Rs 8500 crore Indian tyre industry has attracted substantial foreign
interest Global majors such as Bridgestone and Michelin have already
invested in Indian production facilities Korean tyres are being imported An
equity partnership with Continental will enable Apollo Tyres to access
advanced technology All the global tyre giants spend huge sums in RampD
efforts Apollo Tyres own RampD expenditure is a meagre Rs 15 crore This
effort is focussed on the study of use of different types of rubber chords and
chemicals in tyre manufacture according to Neeraj KanwarThe problem
Continental is also talking to two other Indian companies - JK Tyres and Modi
Rubber -with both of whom it has technical collaboration
A marginal player in the tyre industry a decade ago Apollo Tyres leads the
replacement market in the heavy vehicle and car radials segments It has
achieved this through acquisitions and contract manufacturing One of the
10
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
reasons for Apollo Tyres going in for a greenfield project is its confidence to
expand its market share The focus is to increase our market share to 25 per
cent from 15-18 per cent in all the market segments Mr Onkar Kanwar says
Bus and truck tyres account for a lions share of the industrys revenues
Since the OE market is margin-sensitive all the action is focussed on the
lucrative replacement market especially in the heavy vehicles segment
According to Satish Sharma product manager at Apollo Tyres The size of
the truck tyre replacement market is 4 lakh tyres per month and our share in
that is 25 per cent
Though the volume will be small talks have been initiated with Volvo India
Apollo Tyres is also giving MRF Ltd the leader in the car tyres market a run
for its money Its Apollo Excel tyres rolled out from its Baroda plant have
received an excellent response in the marketplace according to the company
In the OE segment MRF has been losing its hold to Bridgestone And in the
replacement market Apollo Tyres has become a major threat Apollo Tyres is
now negotiating with Hyundai Motors and Hindustan Motors for OE sales The
Kanwars want to reach top spot in the light commercial vehicles segment by
March 2001 In the two wheeler market Apollo is focussing on the motorcycle
tyres market
To boost sales Apollo Tyres has tied up with Castrol India and Kotak
Mahindra Finance Apollo Tyres dealers will stock Castrol lubes and improve
their earnings The tie-up with Kotak Mahindra will facilitate sales by providing
finance for tyre purchases for the first time in India Apollo Tyres has
increased its ad budget to Rs 35 crore from Rs 25 crore earlier in order to
push sales
With all car makers planning to expand capacities the car radial market is
expected to expand rapidly According to the Apollo management the
company sells 11 lakh of the 5 lakh car radials sold per month in India today
At present the companys tyres are fitted as OE in Hindustan Motors
Ambassador and Contessa models in tractors from Tafe Punjab Tractors
and Mahindra amp Mahindra and trucks made by Ashok Leyland and Telco
11
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Industry was on a smooth ride till FY08 The industry tonnage production
registered a 5-year Compounded Annual Growth Rate (CAGR) of 802
between FY03-08 The largest category of Truck amp Bus (TampB) tyres recorded
a 5-year CAGR of 590 while Light Commercial Vehicle (LCV) motorcycle
and car tyre categories grew at 1334 1227 and 1398 respectively in
this period
However as the economy in general and automobile industry in specific
slowed down in FY09 the tyre demand too came under pressure In the first
nine months of FY09 the industry managed a tonnage growth of only 219
against a growth of 738 in the same period last year The tyre offtake to the
Original Equipment Manufacturers (OEMs) declined by 617 during this
period The TampB tyre category was the worst affected with the total offtake of
these tyres declining by 001 in the first nine months Also in the face of
global slowdown and stiff Chinese competition the export market offtake
declined by 982 during this period
On the face of these demand-side pressures the tyre industry saw production
adjustments from all the major players in the last couple of months The
government too tried to provide external stimulus by effecting 6 excise duty
cut across industries (the excise duty for tyres was brought down from 14 to
10 wef December 7 2008 and then further reduced to 8 wef February
25 2009) In all the gloom one silver lining for the industry has been the
easing of the raw material prices from September 2008 onwards However
the impact of the fall in commodity prices was not visible in the nine months
results of the companies as the companies were laden with high-price
inventories The benefits of the sublime raw material prices will become
visible only in the last quarter of FY09 provided the demand too supports the
topline
The tyre industry faces competition from China in the domestic market
Imports as a percentage of total TampB tyre production stood at 10 in FY08
with more than 90 of these imports coming from China While the anti-
dumping duty is levied on the import of Chinese TampB bias tyres the industry
now wants it to be extended to Chinese TampB radial tyres to alleviate the
12
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
import threat In addition the industry is also keen on customs duty relief on
raw materials not producedmanufactured in the country so as to compete
with the Chinese tyres
Radialisation though in its infancy in TampB tyre category is making inroads
Most manufacturers have capex plans for radial TampB tyres with no new
capacity being added for bias tyres This indicates that the industry foresees
radialisation to take further hold in the TampB tyre category In the passenger
car segment radialisation has reached 97 up from 95 a year ago The
Industry is also banking on the customised Off The Road (OTR) tyres and
adding capacity in this category
The Indian manufacturers are looking at increasing their global footprints
Apollo is undertaking an expansion plan at its Dunlop plant in South Africa
Similarly JK Tyres amp Industries has acquired a Mexican company Tornel It
has also entered into a manufacturing agreement with Chinese manufacturers
to sell JK-branded tyres in the export markets
13
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
COMPANY PROFILE
In todayrsquos world of intense competition and rapid dynamism all the companies
worldwide are tuning their focuses on the customer Suddenly the customer
had succeeded in capturing all the attention of the companies towards him so
much so that the once famous maxim ldquocustomer is the godrdquo has become so
true and relevant today There has been a ldquoparadigm shiftrdquo in the thinking of
these companies and none other then the customer has brought this about
Earlier there was a sellers market since goods and services were in short
supply and the sellers use to call the shots But ever since the advent of the
era of globalization there has been total transformation in the way the
customers being perceived Today marketers are directing their efforts in
retaining the customers and customersrsquo base Their focus has shifted towards
integrating the three elements people service and marketing
The customerrsquos importance has assumed imponderable proportions in todayrsquos
world because of the inherent value that the customers command A
customers can ldquomake or breakrdquo a company It is the responsibility of every
company to see that all its customers are equally satisfied with them for one
single dissatisfied customer will tell at least nine others about the
dissatisfaction and will spark off a chain reaction and spell doom for that
company In such scenario retention of the existing customers assumes
diabolical proportion Research has thrown light on some important aspects of
customersrsquo retention it has been proved empirically that acquiring new
customers can cost five times more than the cost involved in satisfying and
retaining current customers
In the past the customers was taken for a ride as there were not many
players in the fields not much importance was attached to product safety
quality service and product appeal The attitude of the manufacture was that
of ldquocaveat ndash emptorrdquo Thanks to the government policies on liberalization
globalization and privatization (LPG) the market scenario has changed today
Today the customer has a host of defense mechanism like the customers
protection laws regulation of the government the powerful hands of the
14
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
organization customersrsquo courts switching to substitute or competitors that
offer at competitive prices etc The maximrdquo caveat ndash emptorrdquo has been
replaced by ldquocaveat venditorrdquo
In the past after sales service was consider as a cost center Companies
were lethargic in attending to customers complaints Availability of trainee
service personal and quality genuine spare parts posed serious problems
However with the rising competition there could not be much product
differentiation as price and quality were comparable and latest technology
was to each and every company in the field Since there could not be much
differential a tangible assets the companies concentrated on the ldquointangible
assetsrdquo namely the ldquoservice factorrdquo which served as a major differentiator
Today after sales service is an important aspect of every company and it is
no more considered as a cost center but considered as a profit center Every
organization strives hard to retain its existing customers at any cost since it is
five times costly to get a new customers then to retain an existing customers
Today most of the industries use information technology to best services to
their customers
MARKETING STRATEGY
15
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Strategic thinking is key to the evolution of successful marketing strategies
of APOLLO tyre This involves the following analyses
(a) Understanding markets Strategic perspective of the market requires skilful
analysis of the trend and how they affect the market size and demand for the firmrsquos
product
(b) Finding market niches Price service convenience and technology
are some of the niches in Indian market
(c) Product and service planning Analysis of the customerrsquos
promotion of the brand both of the firm and competitors besides an analysis
of the situation in which the customer uses the product
(i) Distribution Structural changes in inventory management mobile
distribution are some of the key factors that are going to affect the distribution
process in the Indian market
(ii) Managing for result With pressure on costs prices and margins
marketers will have to make effective utilization of every rupee spent in
marketing
Market opportunity of Apollo tyres-
Identification of market opportunity is critical before the management of
affirm takes a decision to launch or diversify in any product area This involves
analysis of the following
Size of the market
Marketing strategies and the extent and quality of services rendered by
other firm in the industry
Market programmed required to satisfy market wants
Identification of key success factors in an industry and linking them to a
16
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
firmrsquos strengths and weakness
Market opportunity
(a) Size of the market
(b) How well the market is served
(c) Prospective inches
(d) Marketing mix required to succeed
(e) Core competencies required
MARKETING MIX
A Marketing mix is the division of groups to make a particular product
by pricing product branding place and quality Although some
marketers[who] have added other Ps such as personnel and packaging the
fundamentals of marketing typically identifies the four Ps of the marketing mix
as referring to-
1 Product
2 Price
3 Promotion
4 Place
17
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Product
A tangible object or an intangible service that is mass produced or
manufactured on a large scale with a specific volume of units Intangible
products are often service based like the tourism industry amp the hotel industry
Typical examples of a mass produced tangible object are the tyre A less
obvious but ubiquitous mass produced service is a computer operating
system
18
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Price
The price is the amount a customer pays for the product It is determined by a
number of factors including market share competition material costs product
identity and the customers perceived value of the product The business may
increase or decrease the price of product if other stores have the same
product
Place
Place represents the location where a product can be purchased It is often
referred to as the distribution channel It can include any physical store as well
as virtual stores on the Internet
Promotion
Promotion represents all of the communications that a marketer may
use in the marketplace Promotion has four distinct elements - advertising
public relations word of mouth and point of sale A certain amount of
crossover occurs when promotion uses the four principal elements together
which is common in film promotion Advertising covers any communication
that is paid for from television and cinema commercials radio and Internet
adverts through print media and billboards One of the most notable means of
19
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
promotion today is the Promotional Product as in useful items distributed to
targeted audiences with no obligation attached This category has grown each
year for the past decade while most other forms have suffered It is the only
form of advertising that targets all five senses and has the recipient thanking
the giver Public relations are where the communication is not directly paid for
and includes press releases sponsorship deals exhibitions conferences
seminars or trade fairs and events Word of mouth is any apparently informal
communication about the product by ordinary individuals satisfied customers
or people specifically engaged to create word of mouth momentum Sales
staff often plays an important role in word of mouth and Public Relations
Broadly defined optimizing the marketing mix is the primary responsibility of
marketing By offering the product with the right combination of the four Ps
marketers can improve their results and marketing effectiveness Making
small changes in the marketing mix is typically considered to be a tactical
change Making large changes in any of the four Ps can be considered
strategic For example a large change in the price say from $1900 to $3900
would be considered a strategic change in the position of the product
However a change of $131 to $13099 would be considered a tactical change
potentially related to a promotional offer
The term Marketing Mix however does not imply that the 4P elements
represent options They are not trade-offs but are fundamental marketing
issues that always need to be addressed They are the fundamental actions
that marketing requires whether determined explicitly or by default
Product Profile
The Apollo Tyres ltd Is leading company for all tyres-manufacturing company
in India and The Apollo Tyres Company manufacturing the tyres for the entire
segment (TRUCK LCV PCR FARMS OTR)
20
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
21
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
22
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
HV speed rated
Excellent handling at high speeds
Optimum wet and dry performance
Low external and in-cabin noise levels
for a comfortable ride
VW speed rated with superb wet and dry
performance
and exceptional driving pleasure
Innovative asymmetric tread pattern
for maximum performance
Special silica tread compound for better fuel
economy
and wet performance
23
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Rim protector
WY speed rated with a quick steering
response
for a sporty performance
Unidirectional V-shaped tread design resists
aquaplaning
Excellent handling at high speeds
Special silica tread compound for better fuel
economy and wet performance
24
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
ST speed rated
Reinforced tyre construction for long life
Visual alignment indicator for detecting
any misalignment wear in the tyre
Especially designed for low noise
25
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
MC 20 SH 41
SC32-SUV
26
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
SE 66 SH 19 SG 47
GLOBAL PRESENCE
Global partnerships global reputations
Apollo opened its first tyres plant in Perambra 1977 Since then we have
grown to become one of the worlds biggest and most respected tyre brands
our operations are now worldwide
For location details please visit our global locations section
Working for you
Many of the worldrsquos leading vehicle manufacturers - including Audi
BMW Indica Sumo Toyota Qualis - trust Apollo and fit our tyres as
standard Our tyre designers work closely with manufacturers We also
involve our India South Africa and Zimbabwe sister companies to provide
the latest research and development testing and manufacturing facilities
27
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
For more information on original equipment fitment manufacturers
Wherever you are of distribution centres we also supply many retailers
including our retail chain Hi-Q Tyres Use this section to find all the facts and
information on Apollos heritage policie
28
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
LITRATURE REVIEW
MARKETING for APOLLO
Developing a global brand largely depends on the brands ability to explore
fresh avenues and to sustain its competitive advantages in terms of
economies of scale and productivity A global brand is one which is perceived
to reflect the same set of values around the world A global brand removes
the national barriers and linguistic blocks while marketing internationally The
basic of brand building applies to the global branding strategy also For a
brand to become successful a genuine demand or a psychological need must
exist in the market Today when we are looking at a global market one has to
realize that at the most basic level all human beings share common
physiological and safety needs as explained by Maslow
What separates a customer from another customer at some distant
geographic location is the complex social cultural and esteem needs of the
customer depending upon the stage at which the civilization nation is in the
process of development One common understanding is that despite centuries
of technological development these needs have remained as crucial as ever
At best they have undergone changes modifications due to cultural and social
processes
The real challenges comes for a brand manager when he has to make the
consumer aware about the productservice offered in a distinctive
pattern may be with a name logo or color so that the strategy enables the
customer to correctly identify and choose the brand from a cluttered basket
The brands strength is not confined to the degree of recognizability and the
quality of the product offering Brands deliver more than just a predictable
assurance about quality Strong global brands deliver to the strong emotional
need A brand like Nike talks about believing in onersquos limitlessness Rin
speaks about destroying dirt which we see in its most fundamental form as a
threat that disrupts the neat orderly world that we live in A strong global brand
while addressing a fundamental human motivation
29
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
delivers to this motivation in a distinctive way They are driven by distinctive
brand ideas The product is seen in the market place as an expression of
brand idea The product merely translates the brand idea in to a tangible form
with features and styles that is delivered to the consumer Dettol being a
global brand is driven by an idea of absolute certainty it provides in feeling
protected against the hostile forces of the dirty world This brand idea the
APOLLO is pursuing through out the globe irrespective of the fact to which
cultural domain they are targeting for
Consumers in all these countries experience the brand idea only through the
strategic actions of the brand in the market place These brands send market
signals consistent with the idea that they stand for Starting from the tangible
attribution of the brand through the product to the integrated marketing
communication the brand consistently sends the same signal in every
market The more consistent is this marketing signal more clear is the brand
image across the country for the global brands The research suggest that
strong brands and are built over time A brand trust gets built over a large
number of interactions across a range of situations So a strong global brand
is like a network of complex psychological and market structural issues that
include situations associations behaviors feelings and symbols held by a
strong and powerful driver with a central idea
A successful marketing strategy has two options in creating a market
presence
It has to kill competition by constant communication and advertising or use
communication to make the customers feel the method to discriminate in favor
of the brand A strong global brand creates associations in consumer mind to
make them see differently by guiding consumers to attach distinct functional
and emotional benefits and appropriate meanings and beliefs to the brand As
a response to this effort the consumer is willing to pay a premium for these
brands only if they represent added value whether as superior quality or a
clear emotional benefit The brand communication should also communicate
and connect to the people The connectivity of Britannia with health is well felt
all over the world This connectivity is the rational justification for them to
30
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
overcome the extra spending to acquire the brand Successful brands live
beyond generations due to this connectivity
It is not only satisfying customers of different countries with varied cultural
background but also connects with new generations with their new set of
values
hopes and ambitions For a successful global brand it has to click across the
vertical class of generations and horizontal mass of global market
In a global economy organizations must reach customers in markets far from
their home base Strong brand acts as an ambassador when the companies
enter new market or offer new products It also helps in rectifying the
corporate strategy to define which initiatives fit within the brand concept
Brand building for service firms have to modify their corporate strategy also
Professional Services APOLLO such as Anderson consulting re-branded as
Accenture have realized that conveying a sense of trust and shared mission is
as important as technical competence in winning multi million dollar contracts
across the globe Information and the media have made us all global citizens
This presents an APOLLO with the opportunity to broaden market scope by
internationalizing product and service marketing in order to reap the benefits
of economies of scale
Issues in Developing a Global Brand
There are various issues at the organizational level that decides about the
global
branding strategy There are two strategic parameters affecting the decision
of global branding They are the relative strength of globalization pressure in
that particular industry and the degree to which the APOLLO has
internationally transferable assets If globalization pressures are weak and the
companyrsquos assets are not transferable including the brand then the APOLLO
need not go for a global brand It should concentrate in the domestic market in
creating a higher brand value If globalization pressures are weak and the
APOLLO has transferable assets then the APOLLO should look for extending
in to a similar market with a global brand The home advantage due to a
31
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
strong brand proposition can be used as a platform for building brands in
selective markets By this the APOLLO can reap added revenue and scale
economies with valuable international marketing experience This category of
global brand extension goes for looking at analogous international markets
which are similar to the home market in terms of consumer preference
geographic proximity cultural similarity or even government regulation LG AC
extension to the south Asian market for their three wheelers is an example of
brand success in analogous market The success of Indian movies with a
typical emotional branding is another example of brand success Companies
can look for countries with common cultural and linguistic heritage The
success of Ramanand Sagarrsquos serial ldquoRamayanrdquo in Asian market is also
another example The story of Asian Paints in Indian market has made it to go
for global branding in countries like Nepal Fiji and Korea with its typical low
cost formulations and service delivery propositions to support the brand name
called ldquoACrdquo Companies from emerging markets can also go global and
launch global brands
However for having a global brand one has to take in to consideration a
different set of opportunities and constraints The low cost of wage and
proximity to raw materials also give a competitive advantage for domestic
companies to go global If these players can overcome the deficiencies in
skills and financial resources then launching a global brand will be a difficult
proposition The success of Infosys and Air conditioning as brands in the
global market is example of global branding success in high-tech industry
However there are many complex factors that can affect a global marketing
strategy These include the nature of the product (for example consumer
durable products being more suited to standardization than non-durables)
features of a particular market and even organizational history
32
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Common Approaches to Global Branding
The development of standardized marketing strategies can vary dramatically
ndash for example should the strategy be based upon the common features of a
trans-national mass market or upon the identification of common clusters in
different countries The problem for a multi-national APOLLO is that it
operates in a number of countries and adjusts its products and practices in
each at substantial cost So by standardizing elements of the marketing mix
through an international strategy the argument is that efficiency can be
greatly improved
But question marks hover over the extent to which a uniform marketing
strategy can be implemented A great deal of diversity exists in geographical
markets in terms of physical conditions and marketing infrastructure not to
mention political and cultural issues which may impact at brand and
advertising level Cultural disparities can be a major stumbling block for the
generation of trans-national brand names Initiatives such as the world trade
APOLLO is obvious attempts to combat some of these problems by the
removal of national differences and the creation of a borderless world The
idea is that this will enable the rationalization of product mixes to eliminate
brands geared towards particular local requirements
Technology as a Catalyst for Product Standardization The development of the
Internet and satellite television has paved the way for cross-boundary
advertising and promotion But authors such as Mead have also recognized
that a basic similarity in tastes between countries is an important factor
Significant commonalities exist in Japanese American and European lifestyle
patterns and consumer demands It is often argued that increasing travel and
electronic communications will lead to the harmoniza
The argument that was raised against Maslowrsquos Hierarchy was on account of
its rigidity in that it doesnrsquot allow space for a personrsquos Life cycle Dr
Rangarajan argued in his class almost a year ago that people whose meager
basic needs arenrsquot met
33
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
The early system of warfare and its continued legacy through the ages has
always fascinated me I have always drawn a similar analogy in the realm of
marketing warfare Before sketching out the various strategic elements of a
dynamic marketing mix which ultimately should lead to multibranding I will
dwell a bit on the battlefield tactics and warfare methods to drive home the
modern aspects of my multibranding thesis
The quest to conquer more lands and frontiers was almost always decided on
an open battlefield in the earliest eras of warfare Waves of soldiers would
take up frontal positions and fight pitched battles in accordance with set rules
and norms With the advent of superior weaponry generals on the battlefield
started leveraging competitive advantages The strategic elements emerged
and military strategists resorted to tactical warfare and started working out
gamelans to outmanoeuvre opponents Many tactical moves were planned mdash
for instance redeploying of forces and resources or activating hit-and-run
measuresmdashaccording to changing situations without ever deviating from the
broader vision of winning the long-term war
34
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Modern marketing warfare postures
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
Identification Of The Core Brand
As there is increasing multiplicity of competitors it becomes imperative to
identify your core brand This easily represents the first step of multibranding
that a strong brand needs to adopt The brand so identified must basically
deliver the largest volume and the highest cash flow Clearly this brand has to
be in a leadershipnear-leadership positionmdashwith this being the most
attractive element of the business At this juncture it is time to begin the step-
by-step line of activities to guard the core brand Create one or more smaller
product categories to protect the flanks after fortifying the top and the rear
with a slew of other aggressive products
In the soaps business Lux crafted a multibranding strategy to ward off the
incessant threat from a new and aggressive line of competitors At the core
was the main brand Lux which fought with all the competitors and connoted
the image of a dominant brand of soaps Then Lux introduced a number of
35
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
soaps that went on to become volume sellers and gave Lux a protective
cushion As a rearguard measure Lux brought in Jai into the market to
consolidate its overall market share Similar has been the case with market
leader Colgate in the high-decibel high-activity toothpaste segment
Apollo suv tyres From market leadership to overall brand consolidation
Apollo suv tyres rsquos case history when it unravels its detailed chapters
represents a classic multibranding success story In the consumer electronics
sector Apollo suv tyres was a mass brand and very middle-class in
lsquocharacterrsquo As a core brand it did not have any brands at the top end or at the
flanks to ward off the thrust from the Sonys the Panasonics and the VFM
Korean range of products So Apollo suv tyres developed Bazooka as a top-
of-the-line product to spearhead a frontal assault Toshiba too was introduced
to reinforce this strategy to take on all comers Private was introduced as a
sub-brand and gave tremendous protection to the brand in all the size
categories and especially from price-aggressive competitors The coup de
grace was to bring in Sansui to protect the flanks completing the protection of
the core brand Apollo suv tyres from virtually all sides
But according to Newtonrsquos law each and every force has an equal and
opposite reaction So while a new range of brands and sub-brands creates a
revenue thrust and protects the core brand the core brand tends to get
compressed over a medium- to long-term period Likewise Apollo suv tyres
saw its market share fall to 19 per cent from 26 per cent However all the
other brands that were a part of the overall multibranding campaign gained
substantial market share So while production capacities were shored up
brand shares got fragmented This led to an overall consolidation of the core
brand Apollo suv tyres which itself grew by 40 per cent Thus a
multibranding exercise once initiated can bring about a substantial
consolidation of the core brand
Another application of multibranding is to move into product segmentation
based purely on the socio-economic parametermdashsomething which Raymond
as a core brand specialized in Park Avenue the Raymond brand of
readymades was introduced to cater to the new breed of professionals that
36
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
was a part of the liberalized era For the youth who were more into casual
wear there was the Parx range of casuals across various product categories
After that Manzoni an absolutely top-of-the-line range of ties suits and
jackets was introduced Manzoni has been a complete sellout in a period of
six months whereas the other brands have flowered independently toomdash
reinforcing the brand values of the core brand Raymond and consolidating
the overall market share
Multibranding The Big Boysrsquo Game
There is no doubt that multibranding is a lsquobig bucksrsquo game which can only be
played by the big players in earmarked business areas and business streams
Profitable enterprises with the necessary operational efficiencies are the only
ones capable of supporting brand promotion and brand protection exercises
Besides they are the only ones capable of allocating huge budgets deploying
huge resources and making tactical retreats or assuming aggressive postures
whenever ticklish situations arise Also it must be said that over a period of
time as the stronger brand consolidates they have the wherewithal to not
only set up entry barriers but also take on aggressive competitors already
present in their market space
Future and Beyond
Technology and the growth of the Internet as a business-enabler will play a
dynamic role in extending the tremendous value of the multibranding concept
Blocks of corporate houses which will capture their spaces and keep
consolidating will emerge in the long run There will be transgression of the
main brands and sub-brands which while achieving critical mass will have
their own independent status Here multibranding will be effected through a
process of acquisitions buyouts and mergers alternately leading to the
overall consolidation of the main brand Information management will become
very important and the derived competitive advantages will lend a new
dimension to the multi-branding concept In fact this will ultimately lead to
knowledge-based marketing
37
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Today brands and other tangible assets represent a significant proportion of
a companyrsquos enterprise value The traditional Approach to brand management
is changing and their has been shift towards a new paradigm in the marketing
APOLLO This emerging trend represents a more away from a system
focuses on the individual brand manager who is responsible for all the
business activities that relate to ensuring the success of a specific brand
Branding identifies five major environmental forces affecting market behavior
and
suggests their implications for brand management We pay some attention to
interrelations among these forces and the proactive nature of brand
management itself in helping shape them Given dramatic changes in the
competitive nature of product-markets and technology and their
consequences in the evolving role of both distributors and facilitating
organizations it is understandable that decision processes and organizational
structures used to make and implement brand decisions also may need
reexamination
Firms face difficult trade-offs between the increased importance of
coordinating brand activities both within and outside the organization and the
pressures to decentralize decision making and eliminate entire layers of
management in the hope of curtailing costs Low and Fullerton (1994) trace
the evolution of brand management from the origins of the first national
brands to the present They provide an important historical perspective for
many of the issues affecting brand management today They note that brand
management has proves quite adaptable to differing firm and marketing
environments over its existence As the modern corporation increasingly
incorporates horizontal coordination structures the brand manager may even
become part of cross-functional teamsThe original logic for the brand
manager system in the multibrand firm rested on the belief that competition
internally for resources would improve efforts on behalf of each brand But
managers for multiple brands in the same product category (such as Cheer
Bold Oxydol and Tide detergents for P amp G) often competed as ruthlessly
with one another as they did with counterparts from competing firms The
38
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
difficulty in coordinating marketing programs for each brand and demands for
a more coherent approach to managing an entire category of products on the
part of the trade led firms such as P amp G recently to centralize decision
making at the category level with other firms either following or actively
studying the possibility Low and Fullerton (1994) comment that category
management also affords the opportunity for more experienced executives to
involve themselves with the brand management function thereby reducing
one of the weaknesses of traditional brand management
Zenor (1994) argues that a category form of brand management APOLLO
seems inherently justified by an improved ability to coordinate pricing and
other marketing efforts for a firmrsquos different products and brands His research
uses a game theoretic model to estimate the magnitude of profit advantage
that category management affords given varying degrees of crossbrand price
elasticity in the market He demonstrates that the success of category
management is enhanced when competitors are organized similarly
Estimates of gain can be compared with the costs of implementing a category
management structure to decide if such a move is beneficial
Brand managers must address the exigencies of the evolving needs of buyers
within a market increasingly populated by global competitors and the opening
of territorial markets They must deal with the fuzziness of product-market
boundaries aided by increased deregulation and competitive initiatives which
has the creation of new products services and the lowering of costs as
principal benefits
An increasing pace of technological change which profits from its own past
successes and is given new impetus with globalization and increased
competition and represents another factor contributing to blurred product
market boundaries the growing power and independence of the channels of
distributions as intermediate customers often made possible by advances in
information technology and pressure from investors to produce more
predictable growth in
39
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
revenue profits and cash flows and thus benefit from cost reduction These
forces affect buyer expectations and opportunities and by so doing impact
back upon themselves creating change
Brand managers must realize that how competently they respond depends in
part on how they leverage new capabilities and options presented and that
their actions affect the very forces to which they respond Throughout this
paper as appropriate we highlight the special contributions and identifies
several research opportunities this perspective efforts
Marketers must create competitive advantage by constantly adapting to and
instigating change An innovative product or program loses its competitive
edge and the ability to command price andor share premiums as soon as
competitors are able to duplicate or counter its capabilities Hence successful
marketers must dare to be different to market changes are likely to be more
successful if actions are guided by knowledge of the forces shaping market
behavior and insights that enable the development of sustainable competitive
advantages
Globalization of Competition and Greater Openness of Markets
For an increasing number of cases the globalization of the world economy
can present daunting challenges Japanese manufacturers have had
unrivaled successes in the motorcycle and consumer electronics markets in
part due to associations with quality and reliability The December 1993 issue
of Consumer Reports carries brand name ratings in six product categories
pocket knives bread makers SLR cameras perfumes rack stereos and
miniature televisions In each category the top rated brand and over 60 of
the top ten brands were foreign
This attack from global competitors accounts for many sleepless nights for
brand
managers Brands often must thrive globally to survive locallyBrand
management changes and competitive advantage model elaboration A
40
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
systems model of brand management will be presented in the spirit of Meade
and Nason (1991) in the marketing literature A system can be defined in
terms of structure and with respect to this the structure of a system refers to
the specified set of relationships The importance of this lies in the
identification of potential interdependence among the components that is the
influence that one or more sets of relationships may have upon the others
(Dixon 1991) The model presented in this paper attempts to identify levels of
interdependence in the brand management system to then identify
hypothesized relationships between variables The central idea of the modal
is that brand management is a holistic system it receives information from
internal sources it creates a structure to meet the needs of both internal and
external constituents and then develops strategies which should help attain
competitive advantage There are feedback loops which permit the system to
receive information from a variety of sources so that the system can adapt to
changes
The existing research has revealed that external environmental changes
(Shocker 1994) and APOLLO specific variables have caused marketing
APOLLO to begin adopting new brand management system and
subsequently are changing the function of the manager It should be noted
that the changes occurring in brand management mirror those at the
corporate level as pointed out by Miller (1987) when he related the variables
of strategy structure and environment Miller (1992) further showed that firms
which adapt their organizational structures to the environment are best suited
to meet the needs of the external environment The recent upheaval in
marketing organizations and specifically brand management system reflect
these findings These changes have led to changes in micro-level brand
strategies as well as effects on competitive advantages The model will be
elaborated in detail below and then research propositions will be outlined
which relate to the inter relationships which exist in the brand management
system
41
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Strategic Alliances
In the face of global competition domestic firms may seek alliances with
foreign
competitors thus co-opting them and preventing their availability to
competitors Such alliances have become the norm in the auto industry Or
given shrinking margins and profits at home companies may seek greater
opportunity in the global arena To survive companies often have to share
costs and risks and therefore rewards Increasingly they also are forced to
share knowledge distribution and even capital via strategic alliances that can
stretch organizational capabilities and change the nature of brand
management The brand manager must coordinate with counterparts outside
the firm as well as traditional contacts within For many firms strategic
alliances with certain suppliers distributors and even former competitors are
a key to future competitive strength Cobranding extends to alliances between
the complementary brand names of independent producers for example
Fordrsquos Citibank MasterCard
42
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Collaborating with competitors
Although alliances between manufacturers with complementary skills or
between manufacturers and their suppliers and distributors is natural and
understanable even direct competitors can find reasons to collaborate The
strength of global challenges encourages domestic competitors to form
alliances and creates pressures for changes in antitrust regulation to make
the alliance feasible Global alliances may provide a way of weakening
antitrust restraints This requires new thinking and possibly a split personality
for the brand manager as he or she cooperates in one domain while possibly
remaining competitive in another This may force new organizational
arrangements on the firm
Designing Products for Global Acceptance
There are myriad factors that influence both customer and competitor
behavior in foreign markets An emerging strategy that seems to be
succeeding is to plan globally and act locally in which activities such as
product design are conducted at a global level but marketing and other
transactional activities are customized locally Finally managers must be
careful in coping with cultural or language differences
The expansion into Europe was comparatively easy from a cultural
standpoint As Japan developed the cultural differences were larger and US
business had more difficulty there As we look ahead the cultural challenges
will be larger still in the rest of Asia ndash from China to indonesia in Thailand to
India ndash where more than half the world lives US companies will have to
adapt to those cultures if they are to succeed in the 21st century
The brand manager may press for flexible product designs that contain
features important to all markets collectively or options that can be added
readily to a basic design to satisfy local requirements Brand management will
be involved actively in seeking out selecting from and implementing an array
of such options
43
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
The Increasing Openness of Markets
Deregulation often leads to increased competition from outside traditionally
defined product ndash market boundaries Each of these new competitors are
leveraging their established relationships with customers to penetrate the
credit card market rapidly To contain threats banks have gone into
partnership with airlines and telecommunication companies to offer credit
cards with ldquofrequent userrdquo miles
The effects of deregulation are felt in varied industries ranging from import
export to telecommunications health care and transportation It is worth
nothing that competitive forces often precede deregulation They are both a
cause and an effect The challenge to brand management is sometimes how
to adapt proactively to harsh new market realities before the protection
afforded by regulation is removed
Competition
In an era of rapid technological change accompanied by fast innovation
shorter product life cycles and converging markets time-based competition is
becoming increasingly important Companies with shorter product
development cycles can close in on potential markets faster Each product
iteration enables a fast-cycle APOLLO to apply marketplace learning (eg
features and functions that customers like or do not want) thereby potentially
improving success of the next model Brand managers acquire greater
control When competitors can leverage similar technologies to doplicate
products and services speed is even more important Harvesting the best
customers Occupying the mental corner store
Developing a reputation for innovation Shorter order fulfillment cycles
Mass customization The Increased Power of Distribution and the Evolution of
Channels The new level of competition in many product markets has been
abetted by dramatic changes in product distribution and the behaviors of
distributors Whereas in the past products moved in a loosely coupled fashion
from manufacturers to wholesalers and retailers to the final consumer all
levels of distribution and supply now see the importance of systemwide
44
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
coordination to improve operating efficiences The advent of the term
ldquorelationship managementrdquo captures this new awareness of symbiotic
interoganizational requirements for delivering customer value For some
manufacturers this has led to the recognition that distributors are customers
with their own preference functions Conflict within the channel in the past
merely a nuisance is now seen as a potentially fatal obstacle to the success
of the brand Intensifying product market competition also has changed the
geographic scope of product market boundaries As markets become more
global the scope of distribution systems
for most firms has broadened as well Brand managers now recognize the
incredible value of global brands ndash those recognized and admired throughout
the world ndash and the difficult tasks associated with their creation and
maintenance
As the relationship between producers and distributors has intensified the
relative power of distributors especially retailers also has increased The
rapid diffusion of electronic scanner systems has contributed to the shift in
information power from manufacturers to retailers Now store managers can
respond quickly by examining the impact of promotions They can tell the
salesperson what works best ndash and what does not This has led the brand
manager to more consultation with distributors to seek greater understanding
of their perspectives
In many cases retailers are demanding and getting access to
manufacturersrsquo products for their own private label and store brand purposes
The national brand may be forced to concentrate only on flavors or varieties in
which the private label does not choose to compete This power shift away
from the producers of branded products has led to the welldocumented
increase in the use of marketing actions directed at the trade rather than final
consumer Distributors interested in profit across brands and product
categories (Zenor 1994) and developing their own bonds with consumers are
prone to play manufacturers against one another creating difficulties for sales
and brand managers This has encouraged brand managers to obtain sound
market research information to become better informed in dealing with
45
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
distributors Managers of large brands can try education to wean trade
customers away from promotions through ldquoeveryday low pricerdquo (EDLP) and
other strategies
NEW TRENDS OF THE MARKETING
It is at the product ndash market level that broad environmental forces are
transformed into specific competitive threats and opportunities that require
new and creative brand management responses Both customers and
competitors learn and adapt Once PC buyers learned that IBMcompatible
clones were reliable and used the same components as name brands they
refused to pay hefty price premiums for IBM or Compaq The introduction of
Microsoft ldquoWindowsrdquo improved the user-friendliness of PCs and drove Apple
and IBM ndash compatible computers closer together and made each more
vulnerable to price competition from the other Corporate downsizing and
corresponding reduction in in-house purchasing expertise may imply
increased importance for intangible ldquoproductrdquo components such as the service
and relationship dimensions This shift may cause an increase in the
importance of corporate brands and bring reward to reapportions that are
compatible The brand manager must become ever more sensitive to these
possibilities Brand management is challenged to understand the dynamics of
changing markets and manage brand association
The Usefulness of Brands
The value of a brand name is associated closely with its awareness quality
perception and the customer satisfaction engendered by related products and
offerings among others (Aaker 1991) Brands are symbols that consumers
have learned to trust over time and they often signal intangible product
qualities (Erdem 1993) This signal is often based on ldquoexperience attributesrdquo
such as perceived reliability quality and safety (Nelson 1970) that products
and related
marketing programs afford Such intangibles often lead to more defensible
advantages for the firm relative to search attributesrdquo (physical features and
prices that are readily comparable across brands via inspection or information
46
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
search) because consumer learning time and experience opportunities are
limited Search attributes moreover often can be copied readily by
competitors and it is only when they have not been (because of insufficient
time patent protection proprietary production and distribution processes or
creative promotion) that they also contribute to brand equity
Broniarczyk and Alba (1994) provide empirical support for this signaling
interpretation of brand equity
Customer satisfaction and ldquorelationshipsrdquo with a brand provide it protection
from
competition Relationships put any single action in perspective its importance
evaluated against the back ground of previous experience with the brand
Consequently managers have found that satisfied customers often have
many desirable characteristics ndash they by more are willing to pay more incur
lower sales and service costs and provide referrals This has spurred brand
managers
to focus on customer satisfaction as a measure of operational success
The value imperative
Buyers across product-markets have always demanded ldquovalue but defined it
by the behaviors of competitors Tougher economic times increase sensitivity
With added market alternatives available they are now demanding high
product quality and good customer service at reasonable prices The increase
in market share for private labels suggests consumers may be less willing to
apy hefty price-premiums for the ldquoimagerdquo component of national brands
Focus on value requires a paradigm shift ndash from a price-quality relationship in
which high quality could be assumed to lead high prices to one in which
companies must produce high-quality products and services at ever lower
prices
Some distributors have adopted an EDLP strategy or have added ldquovalue
productsrdquo to their lines This latter strategy has resulted in the ldquobackwardsrdquo
47
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
development of new products starting with the desired price point and image
and then designing the product and program to achieve it
Markets also are becoming fragmented by the growing differences in tastes
that
acAPOLLO increasing cultural and economic diversity Buyer differences in
such factors as concern for the environment the value of time and health
and nutrition also provide scope for differentiation The rise of cable with its
offer of myriad channels and the consequent decline of network television
represents media response to increasing fragmentation of audiences but it
also makes it more expensive to reach potential customers Managers of
brands still face a need to
provide an orchestrated message to customers distributors and other publics
in the form of ldquoone voice marketingrdquo Although hardly an innovative concept
the goal of integrated marketing communications has been driven by the
increasing feasibility of direct marketing activities fragmented nature of
media emergence of more sophisticated and efficient telecommunications
and increased reliance on sales promotions relative to advertising Each of
these has made the development of a strong and consistent brand image
more difficult to achieve
Because it is inherently individual and multidimensional brand equity can be
difficult to measure and even an appropriate measure can depend on user
purpose A variety of measures have ben proposed in the literature of offered
as the proprietary products of market research and advertising firms Each
has strengths and weaknesses and must be evaluated in light of brand
managementrsquos purposes The brand manager gains understanding of the
relative contribution of product attribute perceptions and nonattribute imagery
to the brand equity for different segments and enables valuation of a brandrsquos
extension to different product lines and other markets The rapid increase in
market information for managing brands particularly from scanner technology
at the retail level has had a major effect on how brand management
decisions are made Such research data are more objective and can be
collected and processed in a timely fashion Often historical data for a product
48
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
category are immediately available to the manager when the need for them
arises Increasingly more and better decision aids have been created to
analyze such data The different strengths of data collected at the household
(micro) and store
(macro) levels might be combined to offer the brand manager more detailed
information about brand preferences and socioeconomic characteristics of
buyers (and segments) along with information regarding the sensitivity of the
market to price promotions the impact of a brandrsquos strategy on competitors
and the vulnerability of the brand to competitive actions
Needless to say brand managers appear increasingly challenged The world
of the brand manager is complex and becoming more so Technology is at
once a curse and an opportunity ndash while creating new capabilities for the
brand manager it also provides a need for new skills and different vision The
forces brand managers face are not temporary If anything they increase the
need for the type of coordinated management brand management traditionally
has as its strength Brands continue to have value in a competitive
marketplace and undoubtedly will continue to exist Although specific
organizational forms may change brand management itself will adapt and
thrive as managers accept new challenges by improving their competitive
ability The global management of brands especially with respect to whether
when and how brand names can be used as sources of competitive
advantage in an increasingly global economy The impact of information
technology on the brand management system and brand managerrsquos job-how
that job is changing as decisions are decentralized and involvement in those
decision is broadened both inside and outside the organization How to
leverage technology better when it is not proprietary to a single firm Better
understanding the causes of individual segment and mark behavior
(Barabba and Zaltman 1991) promising starts have been made by research
dealing with purpose and context in buyer decision- making but more is
needed to understand how buyers from the criteria they use to evaluate
products and marketing offerings and how these change with different
decision contexts Better understanding of the circumstances under which
brand equity varies and when individual-or segment-level measures are better
49
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Globalization may imply that buyers are less (more) homogeneous then
they may be domestically The role of usage application on brand equity is
poorly understood
The relationship between the shift in power in distribution channels and the
control over brand over brand names and the marketing programs that
support those brands Must private label national brand status create a
fundamental distinction irrespective of quality of the product The
development and importance of corporate brands and brand identity
especially within business-to-business and service contexts The
understanding of better ways to manage joint and co-branding and other
forms of strategic alliances especially those between erstwhile competitors
and The development of more of a ldquosystem view of brands and products to
include how intangibles created by the pricing promotional service and
distribution decisions of the brand manager combine with the product itself to
create brand equity and affect buyer decision making
50
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
RESEARCH METHODOLOGY
Research Objective
To understand the objectives of the marketing strategy of Apollo Tyres
To study the different product differentiation for the Apollo tyres
To analyze the customer and retailers view about the selling Apollo
tyres
To recommend feasible improvements in the marketing strategy opted
by the Apollo tyres
HYPOTHESIS
After three decades of consistent growth Apollo Tyres Ltd a Gurgaon-based
tyre manufacturer has emerged as one of the premier tyre manufacturers in
India Starting with one plant and an installed capacity of 420000 each of
tyres and tubes Apollo currently has eight plants in the country A ninth plant
in south India with a capacity of 24 million radial truck tyres will be added
soon The company is credited with Indias first radials and first range of high-
speed tubeless passenger car tyres It has spread its wings internationally
too Apollo has grown inorganically to establish its market presence across 30
African countries A recent acquisition adds Europe as its third crucial market
RESEARCH METHODOLOGY
Secondary Data
It will consist of information that already exists somewhere in documents The
secondary data will be collected from the newspapers expert reports internet
and Apollo Tyres Companyrsquos website etc
Internet - wwwgooglecom wwwwikipediacom etc
Past records and analysis
Books Magazines amp Journals
Both primary and secondary data will be collected to analyze
Existing market scenario of Indian market with respect to auto
industry
51
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Customers views regarding Indian automotive Industry
Expertsrsquo opinion regarding Indian Industry and contribution of
Apollo tyres into it
PRIMARY DATA
Primary data will be collected from the people from Apollo tyres as an
marketing manager or senior level management The primary information will
be collected through questionnaire and Interviews presented to the Apollo
tyres customers and retailers
Questionnaire ndash Structured
Dichotomous open ended multiple choice
Personal Interview
General Discussions
Tool Used
Bar Graph Pie Diagram
SAMPLING METHOD
Random Sampling chosen by the gathering of data
SAMPLE SIZE
100 people
TARGET AUDIENCE
Marketing manager of the firm retailers based at Delhi and NCR and
customers
SCOPE OF THE WORK
To analyze the existing performance marketing strategy done by the Apollo tyres its
effectiveness and recommendations and measures to improve the procedure in the
organization
JUSTIFICATION OF THE CHOOSING TOPIC
52
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Tyre manufacturers have had a rough time in the past one year While
demand shrunk in the backdrop of slowdown in the automobile sector raw
material prices soared denting margins extensively High cost of funding too
added to the woes However there has been a substantial correction in prices
from the highs seen in FY09 Rubber and crude oil are both at much lower
levels Prices of crude oil derivatives such as carbon black synthetic rubber
nylon cord fabric and rubber chemicals have brought significant respite to all
tyre majors
53
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
DATA ANALYSIS AND FINDING
ANALYSIS OF CUSTOMER MEETING AND CAMPAIGN
When we asked about the general rating that customers might give to Apollo
Tyres has whole the feed back that they gave was as follows approx 23
customer said that Apollo Tyres is excellent and 56 customer said that
Apollo Tyres is very good 21 customer said that Apollo Tyres is average
and know body is said that Apollo Tyres is below average The graph below
shows the following information
When asked about where do most of the customers go for purchasing Apollo
Tyres the feed back that were received from customers are as follows around
75 customer said that they purchase Apollo Tyres from the exclusive dealer
of Apollo Tyres 20 customer said that they purchase from MBDs (Multi
brand dealer ) so that they could make a comparison of cost between Apollo
and other brands available and rest 5 customer said that they purchase
Apollo Tyres from other tyres traders the graph below gives better information
54
0
10
20
30
40
50
60
Excellent Very Good Average Poor
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
55
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
When asked about how easily customer get Apollo Tyres the response was
follows approx 82 customer said that they get Apollo Tyres very easily
whenever they require them from the nearest dealer and 18 customers said
that there is always a scarcity of the most popular brands of Apollo Tyres Ltd
Such as Aspire Acelere Sportz Acelere Hawkz and Amazer XL
The Graph below shows the exact position
56
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
AGE OF SATISFIED AND DISSATISFIED USER OF APOLLO TYRES
The 83 customers are fully satisfied with the Apollo Tyres and just
17 customers are not satisfied with the Apollo Tyres We met the different
customers Customer said that the quality of Apollo Tyre is very good Tyre is
very costly but the performance of Apollo Tyre is better than other tyres They
said that the claim policy of Apollo Tyre is very good Several customers are
very friendly and the Co-operate in our work but few customers behaved very
rudely Customers are happy with the campaign and they said that they gain a
lot of knowledge from the campaign and they said that campaign should be
organized continuously in different area
57
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
These things give us a good experience and obtain good knowledge about
customers attitude
EXHIBIT-21(a)
Table showing Brand preference for front wheel as per respondents
Table-21(a)
Brand No Of Respondents Per Cent
JK 31 31
APOLLO 28 28
MRF 8 8
BIRLA 23 23
OTHERS 10 10
TOTAL 100 100
Source- Primary data
58
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-21(a)
Brand preference for front wheel
31
28
8
23
10
JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [31] prefer JK tyer for front wheel because of smooth driving
28 of respondents prefer APOLLO tyre for better mileage 8 of
respondents prefer MRF tyre for quick service 23 of the respondents prefer
Birla tyre for better claim policy 10 of the respondents prefer other brands
59
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-21(b)
Table showing Brand preference for rear wheel as per respondents
Table-21(b)
Brand No Of Respondents Per Cent
JK 28 28
APOLLO 18 18
MRF 10 10
BIRLA 27 27
OTHERS 17 17
TOTAL 100 100
Source- Primary data
60
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-21(b)
Brand preference for rear wheel
28
1810
27
17JK
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [28] prefer JK tyer for rear wheel because of smooth driving
18 of respondents prefer APOLLO tyre for better mileage10 of
respondents prefer MRF tyre for quick service 27 of the respondents prefer
Birla tyre for better claim policy 17 of the respondents prefer other brands
61
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-22
Table showing Best brand as per respondents
Table-22
Brand No Of
Respondents
Per Cent
JK 29 29
APOLLO 27 27
MRF 5 5
BIRLA 27 27
OTHERS 12 12
TOTAL 100 100
Source- Primary data
62
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-22
Best brand as per respondents
29
275
27
12
J K
APPOLO
MRF
BIRLA
OTHERS
Interpretation From the above table it is shown that majority of the
respondents [29] prefer JK tyer because of smooth driving better quality
and reasonable price etc 27 of respondents prefer APOLLO tyre for better
mileage good appearance5 of respondents prefer MRF tyre for quick
service flexibility 27 of the respondents prefer Birla tyre for better claim
policy load capacity 12 of the respondents prefer other brands
63
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-23
Table showing Reason behind the selected brand as per respondents
Table-23
Particular No Of
Respondents
Per Cent
QUALITY 29 29
PRICE 23 23
CARRYING
CAPACITY
27 27
DURABLITY 21 21
TOTAL 100 100
Source- Primary data
64
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-23
Reason behind selected brand as per respondents
29
2327
21 QUALITY
PRICE
CARRING CAPICITY
DURABLITY
Interpretation From the above table it is shown that 29 of the respondents
prefer the brand for better quality 27 of the respondents prefer the brands
for better carrying capacity 23 of the respondents prefer the brand for price
and 21 of the respondents prefer for durability
65
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-24
Table showing Qualities of selected brand as per respondents
Table-24
Particular No Of
Respondents
Per Cent
SERVICE 24 24
LESS EROSION 16 16
CLAIM 31 31
MILEAGE 19 19
OTHERS 10 10
TOTAL 100 100
Source- Primary data
4
66
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Interpretation 31 of the respondents prefer the brand for better claim 24
of the respondents prefer the brand for better service 19 of the respondents
prefer the brand for better mileage 16 of the respondents prefer the brand
for less erosion and 10 of the respondents prefer the brand for other
reason
67
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-25
Table showing Best claim policy of selected brand as per respondents
Table-25
Brand No Of
Respondents
Per Cent
JK 19 19
APOLLO 30 30
MRF 17 17
BIRLA 23 23
OTHERS 11 11
TOTAL 100 100
Source- Primary data
68
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-25
Interpretation From the above table it is shown that 30 of the respondents
prefer ApoLLo for better claim policy 23 of the respondents prefer Birla
19 of the respondents prefer JK tyre 17 of the respondents prefer MRF
and 11 of the respondents prefer other brands for better claim policy
69
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-26
Table showing Best claim policies of APOLLO as per respondents
Table-26
Particular No Of
Respondents
Per Cent
QUICK 19 19
MORE FACILITY 20 20
RELIABLE 17 17
NO PENDING 21 21
GURANTEE 23 23
TOTAL 100 100
Source- Primary data
70
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-26
Interpretation From the above table it is shown that 23 of the respondents
prefer Apollorsquos guarantee policy 21 of the respondents prefer no pending
policy 20 of the respondents prefer more facility 19 of the respondents
prefer quick policy 17 of the respondents prefer more reliable policy
71
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-27(a)
Table showing Brand preferred for heavy load capacity
Table-27(a)
Brand No Of
Respondents
Per Cent
JK 26 26
APOLLO 18 18
MRF 7 7
BIRLA 29 29
OTHERS 20 20
TOTAL 100 100
Source- Primary data
72
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-27(a)
Interpretation From the above table it is shown that 29 of the respondents
prefer Birla for heavy load capacity 26of the respondents prefer JK 20 of
the respondents prefer other brand 18 of the respondents prefer APOLLO
tyre and 7 of the respondents prefer MRF tyre for heavy load capacity
73
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-27(b)
Table showing Brand preference for medium load capacity
Table-27(b)
Brand No Of
Respondents
Per Cent
JK 27 27
APOLLO 26 26
MRF 8 8
BIRLA 14 14
OTHERS 25 25
TOTAL 100 100
Source- Primary data
74
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-27(b)
Interpretation From the above table it is shown that 27 of the respondents
prefer JK tyre for medium load capacity 26 of the respondents prefer
APOLLO tyre 25 of the respondents prefer other brand 14 of the
respondents prefer Birla and 8 of the respondents prefer MRF for medium
load capacity
75
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-27(c)
Table showing Brand preference for normal load capacity
Table-27(c)
Brand No Of
Respondents
Per Cent
JK 24 24
APOLLO 23 23
MRF 10 10
BIRLA 23 23
OTHERS 20 20
TOTAL 100 100
Source- Primary data
76
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-27(c)
Interpretation From the above table it is shown that 24 of the respondents
prefer JK tyre for normal load capacity both 23 of the respondents prefer
APOLLO and Birla 20 of the respondents prefer other brand and 10 of
the respondents prefer MRF for normal load capacity
77
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
EXHIBIT-28
Table showing Motivating factors behind the level of satisfaction
Table-28
Particular No Of
Respondents
Per Cent
HANDLING 13 13
APPEARANCE 28 28
TRACTION 16 16
RIDE 16 16
DURABILITY 27 27
TOTAL 100 100
Source- Primary data
78
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Fig-28
Interpretation From the above table it is shown that 28 of the respondents
are satisfied with the appearance of the tyre 27 of the respondents are
satisfied with the durability of the tyre both 16 of the respondents are
satisfied with the traction and ride of the tyre and 13 of the respondents are
satisfied with the handling capacity of the tyre
79
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
CONCLUSION
The paper provides an empirical view of the range of promotions launched in
the Indian market place from 2003 to 2009 The different promotions include
free gift offers price offs extra product offers exchange offers buy-more-
and-save offers contests and sweepstakes The most frequently launched
promotion is the free gift offer followed by the sweepstake offer and extra
product offer Some differences in trends are found across Consumer Durable
and Service sectors A detailed description of each type of promotion is
provided in order to highlight the different incentives offered by such
promotions
Details about Different Types of Promotions
The specific details about the different types of promotions - price offs free
gift offers sweepstakes extra product offers contests exchange offers and
buy-more-and-saveget offers - are discussed in the following section
1 Exchange Offer
This promotion is seen mainly in the consumer durable product category This
promotion requires the consumer to exchange an old product for a new one
and get some benefit usually a price reduction For example in case of Ac
the scheme offers the consumer a price reduction of Rs 10000 on the new
AC in exchange for an old AC For pressure cooker the scheme offers a price
reduction of 40 on exchanging an old cooker for a new cooker In case of
household durables the scheme usually requires the consumer to exchange
an old model of a product (eg AC refrigerator music system mixer grinder
gas stove) to get a price reduction on the new model Apart from exchanging
an old durable good the scheme also involves exchanging a small TV for a
big TV Most exchange schemes provide an incentive to purchase in the form
of a price reduction One exchange scheme involved returning an old washing
machine for a new one and getting an electric iron as giftThe purpose of the
exchange scheme appears to be upgrade existing users of durable products
to newer and larger sized models of a product
80
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
2 Free Gift Offer
This promotion is popular across a range of product categories It offers the
consumer an incentive to purchase in the form of a free productservice For
example in case of a car purchase the consumer is offered a free product
such as a music system or accessories The consumer may also be offered a
free service such as extended 3-year warranty or free insurance Often the
product offered free is a complement to the original purchase This is
illustrated by instances of the following types of free gift offers
1048707 a free stabilizer with an AC purchase
1048707 free pillows with a mattress purchase
1048707 free petrol on a 2 wheeler purchase
1048707 free toothbrush with toothpaste
1048707 free shaving blade with shaving gelfoam
At times the product offered as a free gift constitutes an upgrade to the
original purchase For example in case of Computer Printers a free Internet
connection Internet telephony it software titles and multimedia package is
offered along with the printer Or in case of notebook computerPC the
consumer is offered a Free Internet upgrade and 20 GB Web Camera
Printer Britannica CDs software In case of fast food restaurants the free
products are items such as soft drink bread stick pineapple fudge garlic
bread ice cream cookies Here the free products appear to be lsquouse
complementsrsquo to the original product
At other times the free product may be a related product or product used in a
similar context eg cooking or cleaning or personal care or eating For kitchen
products the free product are items used in the kitchen such as plastic
containers metal spoon tawa non stick pan idli stand serving bowl table
mat and OTG In case of detergent powdercake the free products are related
cleaning products such as bleach washing soap washing powder bucket
bath soap floor cleaner and utensil cleaner In the skin care segment the free
products are other personal care items such as soap body lotion shampoo
81
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
sachet shaving cream and toothpaste In case of food products the free
product comprises of other edible items such as biscuits coffee namkeen
salt chocolate
At other time the free product may be totally unrelated to the original
purchase For example the consumer may be offered a free pen with a skin
care cream or free batteries with soap It is possible that in such cases the
products through unrelated are targeted to the same segment of consumers
This is particularly seen in free gift promotions targeted at children For
example in case of health drinks the free product are items such as cricket
bat zoom ball story book pencil box biscuits binoculars toy bike cricket
set football and trendy wristwatch which are valued by children Similarly in
case of confectionary products such as chocolates and biscuit the free
products are products relevant to children such as comics sticker toy tattoo
magic paint card and magic candle
In some cases the free gift offered along with the purchase is another product
variant offered by the company For example in case of fruit juice the
consumer is offered the guava flavor fruit juice when heshe buys 5 packs of
orange flavor In case of spices the consumer is offered Kashmiri mirch along
with purchase of the regular spices
Several free gift offers have a pre commitment of size or value of purchase
from the consumer The consumer has to make a certain value of purchase
before he is entitled to the free gift Often there are smaller gifts associated
with purchase of smaller pack sizes and larger gifts associated with purchase
of larger pack sizes of a product In most cases the price of the free gift is not
mentioned The brand name of the free product eg Timex watch or Motorola
handset is mentioned in some cases
3 Sweepstake offer
The sweepstake offer gives the consumer a chance to win a large prize
through luck It ususaly involves a lucky draw or a scratch card based on
which the winners are decided The prizes offered on this promotion can be
broadly classified into two types The first type of prize is a trip to a foreign
82
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
location eg Paris London Thailand Singapore or Malaysia Many brands
offer a trip to the South Africa World Cup as a promotional attraction The
second type of prize are durable products such as Bike Car Watch Washing
Machine Television Refrigerator DVD Mobile Phone Cordless phone PC
Microwave Camera Sunglasses Gold Jewellery Gold Coin Gold has a
major appeal as a prize on the sweepstake promotion across diverse product
categories such as soap and
personal computer In some cases the details of the prize on the sweepstake
promotion is not specified and is stated as lsquoprizes worth Rs 50 croresrsquo
4 Buy more and saveget
This type of promotion requires a consumer to buy two or more products to
avail of the promotional advantage The promotional benefit is usually in the
form of money saved as a result of buying two ore more products at the same
time In certain cases the promotion requires the consumer to buy additional
units of the same product to avail of the promotional advantage For example
in case of bath soaps and detergent cakes this promotion requires the
consumer to buy three bath soapsdetergent cakes and get one
soapdetergent cake free In case of fruit juice the consumer is required to buy
5 packs of fruit juice and get one pack of fruit juice free This promotion seems
to be popular in categories where the extra units of the product offered on the
promotion can be stored for future consumption
When different products are bundled together on this promotion there is
usually a relationship between the products For example in case of computer
printers this scheme requires the consumer to buy a printer and scanner
together and get a price reduction In case of consumer durables this scheme
attempts to induce the consumer to buy greater number of products from the
same company For example the scheme requires the consumer to buy AC
and refrigerator or AC and microwave of the same brand and avail a price
reduction In FMCG products this promotion requires the consumer to buy
toothpaste and toothbrush together or buy shaving cream and blade together
to get a price reduction This promotion is seen in case of Fast Food
Restaurants as well where the consumer is required to buy a pizza coke
83
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
mobile and garlic bread and get a saving on the combination purchase In
case of FMCG products this type of promotion bundles together products that
are use complements
5 Contest offers
Contest offers are seen mostly in products targeted at children In case of
Fast Food restaurant this promotion requires the consumer to fill up a coupon
and get a chance to meet a film star such as Hrithik Roshan In case of soft
drinks the contest offer requires the consumer to answer a question in an ad
and get a chance to meet a movie star In other product categories the prizes
offered on this promotion are similar to those on the sweepstake promotion
The consumer is offered the chance to win a car or a flat or various household
durable appliances
6 Extra Product Offers
Most of the extra product promotions (65) are seen in the FMCG category
where the extra units of product serve as additional consumption units for the
consumer There are no extra product promotions seen in the durables
product category In FMCG the specific products on which the extra product
promotion is launched include Talcum Powder Detergent Cake Soaps Fruit
Juices and Hair Oil In case of toothpaste the promotion requires the
consumer to buy one toothpaste and get the second toothpaste free In a
talcum powder extra product promotion the consumer is offered 20 extra in
the same pack This promotion is also seen in the Services sector In case of
Internet service provider this promotion offers extra hours on the Internet and
free Internet access on Sunday In case of fast Food restaurants the
promotion offers a second pizza free
along with the original pizza or a slice free along with the original pizza
1048707 Other Offers
A variety of promotions are seen in the lsquoAny Otherrsquo category One frequent
promotion in the consumer durable category is the 0 finance scheme for
84
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
purchase of two wheelers notebookPCs refrigerator music system
television microwave oven 2 wheeler
A different kind of promotion requires the consumer to invest money in order
to avail the promotional benefit In case of fans this sort of promotion requires
the consumer to purchase 3 fans and pay Rs 90 to get a wristwatch worth
Rs 480 Another such promotion requires the consumer to buy a fan pay Rs
40 and get a free camera worth Rs 300 In case of health drinks the
promotion requires the consumer to pay Rs 7- more and get a badminton
racket free
A variant of this promotion is another promotion which requires an investment
of effort rather than money from the consumer For example in case of tea
the consumer is required to pay Re 1 and get a Britannia biscuit pack free
along with the tea pack In case of salt the consumer is required to collect a
newspaper coupon and pay Re 1 to get a pack of salt
Yet other types of promotions require an investment of both money and effort
from the consumer in order to avail of the promotional benefit For example a
soft drink promotion requires the consumer to collect crowns and put in some
money to get a price discount on the soft drink In case of ice cream the
consumer is required to collect three ice cream wrappers to get a scratch card
which gives him the opportunity to win lakhs of prizes In case of chocolates
the promotion requires a consumer to exchange empty chocolate wrappers to
get movie tickets or bunny stickers free
85
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
RECOMMENDATION
In the modern world one brand is continuously pitted against the other and
battles are continuously being fought on the parameters of quality reputation
and market share Brands are competing on a one-to-one basis on a regional
national and global level It goes without saying that one of the biggest
developments which defined marketing strategy is brand strategy The entire
packaging of a product or service is in the form of a brandmdashwhich in effect is
one large formationIt was intense competition among the FMCGs on various
fronts that made the multibranding approach very important Whether it is in
soaps TVs apparel or toothpaste segments the endeavour is always to
capture a market with the best possible gross margins One-to-one battles
that are being fought are all in the quest of dominating the gained market
space
Multibranding as a concept and executable marketing paradigm was
pioneered by the FMCGs followed by the consumer durables players It has
now moved on to the packaged food products segment and will soon swamp
the hospitality and other highly service-oriented businesses and sectors
According to our survey suggested that The occupation of the respondents
was very much fluctuating This is done so as to gain more knowledge about
the different strata of the society Also from the result clearly mentioned that
30 people are service man including working in Private firm MNC or multi
national organization While 25 are student because we want to know that
how new generation is aware about the 100 safe parameter Apart from this
10 respondents are house wife a significant number is required because
until or unless house wife is not contributed there views that AC
advertisement would not be successful it also reflected from our survey result
that Here it is quite clear that it is the respondent purchase there product
because of Design is good by 35 where as for issue of price is 15 and the
25 people says they purchasing of AC depends on look wise whether that
product fit for the buyer or not
86
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Like any marketing the concept to be sold has to have some value in the
minds of the prospects The first step therefore is to develop a value
proposition No one buys a concept or a product if it has no value for him A
potent question for the hospital mentioned above would have been Why
would our people work harder for accreditation What is in it for them If they
were able to create a valuable enough answer to this question the idea would
have been sold
Second step is to clearly identify the target group Sometimes there may be
many target groups Marketing to each group will differ according to their
preferences skills intellect etc
Third step is to find out various ways to promote the concept Remember you
have to promote the idea in more than one way You may have to use a
combination of various vehicles to promote your idea
APOLLO Ltd is planning to roll out a new marketing initiative called lsquoA World
Class Customer Experiencersquo As part of its marketing strategy the company
plans to focus on enhancing its entire value chain which includes technology
quality price delivery and after-sales-service
According to Mr B Thiagarajan senior general manager (corporate
communications and marketing) APOLLO Ltd the company is also
enhancing its focus on some fast-growing segments such as telecom
multiplexes and the healthcare markets ldquoAs part of the strategy APOLLO Ltd
is looking for strategic partners to enter into a technological tie-up for high-end
telecom airconditioning equipmentrdquo adds Mr Thiagarajan
For the purpose the company is currently in talks with UK-based Eaton
Williams Group an airconditioning major
On APOLLOrsquos new marketing initiatives Mr Thiagarajan says that the
companyrsquos objective is to focus on intangible factors such as views and
feelings of the customers which contribute to a lsquogood customer experiencersquo
87
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
BIBLIOGRAPHY
Blattberg R and Scott A Neslin (1990) Sales Promotion Concepts
Methods and
Strategies Englewood Cliffs NJ Prentice Hall
Blattberg RC Briesch R and Fox EJ (1995) ldquoHow Promotions Workrdquo
Marketing
Science Vol 14 G122-132
Campbell L and Diamond W D (1990) ldquoFraming and Sales
Promotion the
Characteristics of a Good Dealrdquo Journal of Consumer Marketing Vol 7
pp25-31
Cooke Ernest F ldquoWhat is Sales Promotionrdquo paper presented at Sales
Promotion
Workshop Babson College May 23 1983
Diamond W D (1992) ldquoJust what is a lsquoDollarrsquos Worth Consumer
Reactions to Price
Discounts vs Extra Product Promotions rdquo Journal of Retailing Vol 68
pp 254-270
Diamond WD and Sanyal A (1990) ldquoThe Effect of Framing on Choice
of
Supermarket Couponsrsquorsquo Advances in Consumer Research Vol 17 pp
494-500
Diamond WD and Campbell L (1989) ldquoThe Framing of Sales
Promotions Effects on
88
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89
Reference Price Changerdquo Advances in Consumer Research Vol 16
pp 241-247
Simonson I Carmon Z and OCurry S (1994) ldquoExperimental Evidence
on the
Negative Effect of Product Features and Sales Promotion on Brand
Choicerdquo Marketing
Science Vol 13 (1) pp 23-41
Smith MF and Sinha I (2000) ldquo The Impact of Price and Extra Product
Promotions on
Store Preferencerdquo International Journal of Retail and Distribution
Managementrdquo Vol
28 pp 83-92
89