Posts Tagged ‘P&G’
Although advertising can be a highly effective means of communication for those consumers who are exposed to it, it is becoming extremely difficult to reach with increased media fragmentation and costs of TVCs. Advertising on TV is a very costly affair and is done only when other vehicles cannot attain the objectives.
Increase in Modern Trade
With Modern trade contributing to 20% of FMCG retail consumption in the major metros and tier-1 cities of India, now more and more consumers are scanning your products. The Indian consumers love going to malls and the consumers find the “product talking” at the store more relevant. With these changing dynamics in India, packaging is going to play a major role in the future.
For most of these consumers, packaging is the first point of contact which attracts them to the product while they scan the shelves. According to some newspaper reports of shopper research, an Indian shopper typically spends 20 seconds scanning a shelf. Research always talked about the importance of packaging and the consumer perceptions built on packaging. It is just that marketers didn’t find its relevance, as Indian retail was majorly dominated by traditional trade.
Packaging plays the biggest role in winning the First Moment of Truth (http://brandalyzer.wordpress.com/2011/09/24/google-and-pg-on-zmot/) and plays a crucial role even after the purchase of the product, Second Moment of Truth.
At the point of purchase, packaging serves a number of key functions, namely:
- Cutting through clutter and letting the consumer notice your product
- Communicating marketing information
- Stimulating or creating brand impressions
- Providing brand cues and values – safety, style, value, quality, etc.
Consumers don’t make a distinction between the product and the package. How consumers feel about the package is transferred to how they feel about the product itself. For the consumers the product is inclusive of the package. There is numerous research that shows that consumers build quality, experience, and taste perceptions from the package itself.
Multinational brands that are eager to chew up a bigger share of the Indian market are spending huge sums to carefully study the Indian consumer to bring in elements that appeal to them. For instance, the latest Kellogg cereal packaging to hit shelves has created more drama around food to make it look more appealing.
This year, for the first time in India, design outfit Desmania, under the aegis of Procter & Gamble, organised a competition for innovative packaging ideas, Packinnova 2011. The company invited students from leading design institutes in the country to submit ideas on ‘packaging for small volumes’. So, the point is clear – packaging is gaining importance in India.
According to Proctor & Gamble shoppers make up their mind about a product in three to seven seconds, just the time it takes to note a product on a store shelf. This time lapse is called (by P&G) “first moment of truth” and it’s considered the most important marketing opportunity for a brand. The term “First Moment of Truth” (commonly called FMOT) was coined by Procter & Gamble in 2005 to define the first interaction between a shopper and a product on a store’s shelf.
While this first moment of truth is still important, the rise of full internet adoption and increased search engine use often lead to many brand interactions taking place between a consumer and a brand before that consumer ever sees a product on a shelf. This phenomena is what Google calls as “Zero Moment of Truth”, or ZMOT.
So, essentially the Three moments of Truth changed to Four moments of Truth as below:
1. Zero Moment of Truth: When the user is searching online for a product with an intention to understand the product that he intends to consume or buy.
2. First Moment of Truth: When the consumer goes to the store and interacts with the brands in the store
3. Second Moment of Truth: When the consumer brings home the product and experiences the product. The consumer checks if they delivered on the promises made or not.
4. Third Moment of Truth: When the consumer gives feedback or how the consumer advocates the brand?
Please refer to google-zmot to get a comprehensive understanding of ZMOT. Thank you.
Brand Management is a classic example of markets have changed into consumer-driven markets. Today, brand managers face a lot of market fragmentation, market realities, and competition. The Brand Managers are under pressure to leverage upon the brand assets because of higher costs of creating new brands, although this is dependent upon your brand strategy which we will see later in the blog.
Originally, branding has started with names, and symbols. It then moved on to providing unique experiences to consumers in every way they can. Today, branding is no more about a logo or a name, it is about the complete unique experience in many ways. So it gave rise to a completely new subject called Brand Management and all the complexities of handling the dynamics of branding.
Brand Managers adopt different marketing and branding strategies and unknowingly started creating a lot of line extensions, flanker brands, brand extensions, endorsed brands and subbrands. This led to a new area of Brand Management called Brand Architecture, which studies the relationships and structures among all these flamboyant extensions. For example, companies like P&G and Unilever operate in so many categories and they have many brands under each category where the whole spectrum becomes very difficult to comprehend and manage.
Brand Architecture gives you a clarity of the relationships, structures, and positioning so that we can leverage upon any new opportunities, and missed opportunities. It is all about what level of associations should we have. For example, if Toyota decides to endorse the brand Lexus, what should it say: Toyota Lexus, or Lexus by Toyota. Could you see the difference in the level of association in both the cases with the corporate brand. Toyota Lexus has a higher level of support from Toyota than saying Lexus by Toyota.
Now, consider that your company has acquired another brand. Now, every brand has a a different identity and position in the market. Though, you must have considered all that in your strategic acquisition, it is all a different ball game of how you will integrate that brand in your company, and what level of association will you choose. It all depends on your corporate, marketing, and branding strategies.
Let us see one of the most often used brand-relationship models in Marketing – The Aaker Model of Brand Relationship. The Aaker Model of Brand Relationship has categorized brand relationships into four buckets:
The Aaker Model of Brand Relationship has categorized brand relationships into four buckets:
1. House of Brands
- Not Connected
- Shadow Endorser – Tide (P&G)
2. Endorsed Brands
- Token Endorsement – Grape Nuts from Post, Universal Pictures, A Sony Company, Docker’s, LS & Co
- Linked name – McVeggie, McMuffin, Nestea,
- Strong Endorsement – Courtyard by Marriot, Friends and Family by MCI, Obsession by Calvin klein
- Co-Drivers – Gillette Mach3, Sony Trinitron, DuPont StainMaster (subbrand and master brand both are very strong)
- MasterBrand as Driver – HP DeskJet, Dell Dimension (when subbrand is not very strong and masterbrand drives more)
4. Branded House
- Different Identity – GE Capital, GE Appliance
- Same Identity – Virgin, BMW
Fair & Lovely is a fairness cream of Hindustan Unilever. It is a 1,100 crore brand from the FMCG giant and is one of the largest selling brands in the world. So, what is the big deal about it? The big deal is: Fair & Lovely is going to change its position in the market from fairness cream to clear & flawless complexion.
The new tagline is gorepan sa kahi zyaada, saaf gorapan. Says an HULspokesperson, “Brand innovation and renovation is core to our business. Brand renovation is aimed at constantly renewing the product equity with the consumer by making it current and contemporary. We have attempted to do that with Fair & Lovely.” In my view, the renovation was required as the competition seems to get heated with CavinKare and Garnier. Garnier always positioned itself with both fairness and clear complexion, whereas Fair & Lovely positioned as a fairness cream alone.
It seems that research done by HUL suggested that women need more than just fairness. They need clear complexion along with fair skin and the renovation strategy is to meet the needs of this segment. It is true that the products should evolve in their life cycle meeting the changing needs of your target segment and acquiring new segments. Fair & Lovely is the market leader in this segment with competition from CavinKare’s Fairever and Garnier products. But it looks like HUL is considering renovating its personal care segment as Sunsilk, and Dove, two other big brands from HUL, also went through some heavy marketing and renovation.
So, lets see how well Fair & Lovely performs in meeting the new needs of fair complexion.