Professional Documents
Culture Documents
ON
BRANDING STRATEGIES OF FMCG
INDUSTRY
Submitted by:
Rukhsar M. shaikh
MMS (2014-16)
Roll No.60
TABLE OF CONTENTS
CONTENTS
PAGE NO.
Chapter I
Objectives
18
19
21
Chapter III
3.1 Findings from Observational Field Study
23
25
31
Chapter IV
4.1 Conclusion
Observation and Suggestions
4.3 Recommendations
4.4 References and Bibliography59
4.2
54
58
Declaration
Date:
Rukhsar M.Shaikh
Place:
60A
ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report asa student of Allana Institute of
Management Studies, Mumbai I would like to express my gratitude to all those who gave me
the encouragement to complete this project
My sincere and heartily thanks to Mr. SativinderBedi, Visiting faculty member of Allana
Institute Of Management Studies, for giving me his valuable time and for all the guidance
giving executing the project as per the requirements.
I would like to give a special thanks to my parents and family for their love, support and
blessing enabled me to complete my project successfully.
However I accept the sole responsibility for any possible error of omission and would be
extremely grateful to the reader of his project report if they bring such mistakes to my notice.
Rukhsar M.Shaikh
Roll no 60A
MMS (2014-2016)
satvinderbedi2000@yahoo.com
Executive summary
Brandingisanintegralpartofthebusinessbuildingprocess.Largecorporationsspendhundredsofmillionsofdo
llarsbuildingtheirbrands.Brandshave
become
themostvaluable
assetwithinany
enterprise,quintessentialzingthe knowledge,theart,the science,andthe work ofeachpersonineach
work
day,makingthem
the
ultimate
symbolofmuchthatisgoodandtrueandbeautiful
withinourglobal economy.Intime,Brandsbegantopenetrate beyondthe corporate world. The
impactofbrandinginthe business building process of FMCG companies inIndia was also
witnessed two decades back. TheIndian FMCGsectoristhefourthlargestsectorin theeconomy
withanestimatedsizeofRs.1,300 billion.The sector has shown an an attempt
tounderstandtheconceptandrolesofbrandingstrategyinthebusinessbuilding
processofFMCGcompanies.Forthebetterandin-depthunderstanding,project
comprises
caseof3MNCsin the FMCG sectorinIndiaare studied. The brandingstrategiesoftop
threeMNCsi.e.P&GIndia,HUL, Colgate-Palmolive India,especially inthe body care
productsamongFMCGproduct areanalyses
in details. The projectconcludes that
differentMNCsinFMCG sector adopt different branding strategies each posing different pros
andcons, depending upon their goal and vision.The summary describes the history, mission,
vision ,purpose and the sun silks, Pantene s total brand and how company manages these
brands for segmentation,targeting and positioning.
INTRODUCTION
Due
INDIANFM
CGSECTO
R
TheIndianFMCGsectoristhefourthlargestsectorintheeconomywithatotalmarketsizeine
xcessofUS$13.1billion.Ithasastrong
MNCpresenceandischaracterizedby
awellestablisheddistribution
networkintense
competitionbetweenthe
organizedandunorganizedsegmentsandlow
penetrationcost.
Availability
ofkeyrawmaterials,cheaperlaborcostsandpresenceacrosstheentirevaluechaingives
Indiaacompetitive
advantage.TheFMCG
marketvalue
issettotreblefromUS$11.6billionin2003to
US$33.4billion
in2015.Penetrationlevelaswellaspercapitaconsumptionin
mostproductcategories
likejams,toothpaste,skin-care,hairwashetcinIndiaislowindicating
theuntappedmarketpotential. Burgeoning Indian population, particularly the middle
class
and
the
rural
segments,
presents
an
opportunitytomakersofbrandedproductstoconvertconsumerstobrandedproducts.Growt
hisalso
likely
tocomefromconsumersupgradinginthematuredproductcategories.FMCGsectorisalsol
ikely tobenefitfromgrowingdemandinthe market.Because of the lowper capita
consumptionfor almostall the productsinthecountry,FMCGcompanieshave immense
possibilitiesfor
growth.Andif
the
companiesareabletochangethemindsetoftheconsumers,i.e.ifthey
areabletotaketheconsumersto brandedproductsandoffernewgenerationproducts,they
wouldbeabletogeneratehighergrowthinthe
nearfuture.Itisexpectedthattheruralincomewillrisein2007,boosting
purchasingpowerinthe
countryside.However,thedemandinurbanareaswouldbethekeygrowthdriveroverthelon
gterm.
Also,increaseintheurbanpopulation,alongwithincreaseinincomelevelsandtheavailabilit
y
ofnew
categories,wouldhelptheurbanareasmaintaintheirpositionin
termsofconsumption.Atpresent,
urban
Indiaaccountsfor66%oftotalFMCGconsumption,withruralIndia
accounting
fortheremaining
34%.
However,ruralIndia
accountsformore
than40%
consumptioninmajor
FMCGcategoriessuchas
personal203
care,fabric
care,andhotbeverages.Inurbanareas,home
andpersonal
carecategory,
includingskincare,householdcareandfemininehygiene,willkeepgrowingatrelatively
attractiverates.
Withinthefoodssegment,itisestimatedthatprocessedfoods,bakery,anddairy
arelongtermgrowth categories in both rural and urban areas. IndianFMCGindustry
isexpectedtogrowatabaserateofatleast12%annually tobecomeaRs4,000 billionindustry
in2020,accordingtoanewreportbyBooz&Company.TheReporttitledFMCG
Roadmapto2020-TheGame
Changerswas
releasedatthe
CIIFMCGForum2010inNewDelhi
Thursday.TheReportnotedthatthepositivegrowthdriversmainly
pertaintotherobustGDPgrowth,
opening
upandincreasedincomeintheruralareasofthecountry,increasedurbanizationandevolving
consumerlifestyleandbuying
behaviour.The
reportfurther
revealedthatifsomeofthepositivefactors
drivenmainly
by
improvedandsupportivegovernmentpolicy
toremovesupplyconstraintsplayout
favourably,theindustry
couldevenseea17%growthoverthenextdecade,leading
toanoverallindustry
sizeofRs6,200Billionby2020.Thelastdecadehasalready
seenthesectorgrowat12%annuallyas
resultofwhichthesectorhastripledinsize.Releasingthereport,Booz&Company
PartnerAbhishek
Malhotrasaid,Whileonanaggregatebasistheindustrywillcontinuetoshowstronggrowth,
wewillsee
hugevariationsatmultiplelevelsproductcategory
(e.g.processedfoodsgrowingfasterthanbasic
staples),companiesandgeographies.Many
Indiancustomersegmentsarereaching
thetipping
pointat
whichconsumptionbecomesbroadbasedandtakesofffollowing
thetraditionalSshapedcurveseen
acrossmany
markets.Thesectorispoisedforrapidgrowthoverthenext10yearsand by theyear2020,
FMCGindustry
isexpectedtobelarger,moreresponsibleandmoretunedtoitscustomers,hefurther added
P&G INDIA
P&GIndiaisoneofthelargestandamongstthefastestgrowingconsumergoodscompaniesinIndi
a.Establishedin1964,
P&GIndianowservesover650millionconsumersacrossIndia.Itspresencepans
acrossthebeauty
&grooming
segment,thehouseholdcaresegmentaswellastheHealth&wellbeing
segmentwithtrustedbrandsthatare householdnamesacrossIndia.These include vicks,Ariel,
Tide,Whisper, Olay,Gillete, Ambipur,Pampers,Pantene, Oral-B, Head&Shoulders,
Wellaand
Duracell.
Superiorproductpropositionsand
technologicalinnovationshaveenabledP&Gtoachievemarket
leadershipinamajority
ofcategoriesititpresentin.P&Gadoptstheproductbranding
strategy.Product
brandingisoneextremeofthebrandingcontinuum.Itisfierclydrivenby
consumerlogic.Intermsof
customerperceptionandinformationprocessing,themosteffectivewaytodesignateaproductist
ogive
itanexclusivename,whichwouldnotbeavailabletoany
otherproduct.Thisway,thebrandisableto
acquireadistinctpositioninthecustomersmind.Whatthebrandrepresentsisclearly
understoodand
internalizedby
themarket.Thepurposeofbrandingistodifferentiateyourcowfromothercattleonthe
ranch.Therealityisthatcattleontheranchdolookalmostlikeclones.Asuccessfulbrandingprogr
amme isbasedonthe basisof singularity.Itcreatesonthe marketquite likeyour
product.Abrandmust
singularly
representaproduct.Hanging
multipleproductsonanameislikelytocauseconfusion.Abrand represents aposition, an idea,
aconceptand
aproduct.
That
is
thewayit
should
be.InP&GIndia,eachbrandsuchasOlay,OralB,Pantene,Head&Shoulderetc.ispromotedexclusively
sothatitacquiresitsownidentity
andimage.Thethrustisonmakingthebrandacquireitsownsetof
associationsandastandofitsown.Productbranding
allowsbrandsofP&Gtoacquiredifferentiationand
exclusivity.Thebranddoesnotshareotherproductsanddoesnottakeoncompany
associations.The
companysnameisrelegatedtothebackseattofulfillthelegalcompulsionswhichmakeitmandat
ory to identify themanufacturer.Any brandofP&Gdoesnotgetbenefitsfromthecompany
name.Theidentity
isnotshared.Thegreatestadvantageinfavourofproductbranding
isthatabrandcanbetargeted accurately to a distinct target market or customers because its
positioning
can
be
precise
and
unambiguous.Forinstance,Head&ShouldershampooisbrandedasAntidandruffshampoo.So,those
customerswhowanttobuyshampootogetrelieffromdandruffwillgoforHead&Shoulderrathert
he Pantene. Which focus moreon hairfall control.In this way, customers ofP&G brands
connecteasilywith theproduct brands sincewhat thebrandrepresents to them tends to be
clear.
P&GhasnumerousStrategicBusinessUnits.Theseincludebaby care,beauty care,femininecare,health
care,fabriccare,homecare,foodbeveragesandtissuesandtowels.Theimmediatereactionis:H
owcan
acompanyventureintosomanyunrelatedfields
?P&Ghasbeenanardentfolloweroftheproductbrand
strategy.Itsbrandsarestandalones;peopledontevenknowthatthey
allshareacommonrootinP&G.
Suchlevelofoperationalflexibilitystemsfromitsbrandingpolicy.Thecompanydoesnotsharea
commonidentity.Socustomersdonotexclaim,Oh!Howcanacompany
like
P&Gmake
PringlePotato Chips?Itisa detergentcompany! (Thatis,if source of Arielismade apartof
itsidentity).A
Company
followingproductbrandingisbetterpositionedtoventureintounrelatedareasofactivity
withoutbeing subjected to market scrutiny.
wah,Luxbarsoap,Luxshowergeletc.
Inthisway,
theproductscombinetoformacompletewholeanddrawtheiridentityfromthemainbrand.Asares
ult, it improves thebrandsmarketingpowerratherthan sellingthem as individual brands.
O
B
J
E
C
T
I
V
E
S
Theobjectives
ofthestudyare:
To study the concept and roles ofbrandingstrategyin business buildingprocess ofMNCs.
ToexaminethebrandingstrategiesoftheselectedMNCswithspecialreferencetohaircare
products of FMCG sectorinIndia.
Toanalyzedifferent pros and cons ofeach brandingstrategies adopted byMNCs.
ToanalyzetheextenttowhichdifferentbrandingstrategiesaresuccessfullyadoptedbyMNCsin
I
n
d
i
a
n
m
a
r
k
e
t
.
REVIEW
OFLITERAT
URE
McDonaldetal.
(2001)assertthatanappropriatebrandingstrategyiscrucialasitwouldreinforcethedesiredpositi
oning
andhenceinfluencepurchasebehavior.Unfortunately,eventhebestbrandmanagers
havestruggledtochoosethemostappropriatebranding
strategy,inpart,duetoalackofacademicclarity
andstudy.
PierceandMouskanas(2002):Vijayraghavan(2003)discussedthe appropriatenessofdifferent
brandingstrategiesandsuggestthatindividualbrandingstrategy
isthemostappropriateforFMCG
companies.LaforetandSaunders(1994,2005)
found
outthatin
actualpractice,FMCGcompaniesare
usingindividualbrandingstrategy
incombinationwithcorporateorhousebrandingstrategies.Saunders
andGuoqun(1996)empirically
demonstratedthatconsumersprefercorporateandindividualbrandtypes
togetherforanFMCGproductthaneitherbrandtype
use
alone.Incontrast,Laforet(2011)reportedthat
corporatebranddoesnotaddany
valuetoproductsintheFMCGsector.Strebinger(2004)hasdefined
brandingstrategiesbasedonthenumberofproductcategoriesandtargetgroupsabrandingstrateg
y
serves.Heproposedfivetypesofbrandingstrategies;first,corporatebrandingstrategy
thatadoptsa
uniformbrandforallproductcategoriesandtargetgroups.Second,targetgroupbrandingstrategy
where
acompany
usesadifferentbrandnameforeachtargetsegment.Third,aproductbrandingstrategy in whicha
differentbrandname
isusedforeachproduct
category.Fourth,productandtargetspecific
brandingstrategy
wherethereisadifferentbrandforeachcombinationoftargetgroupandproduct
category.Firth,brandfamily
strategy
inwhichhierarchicallyrankedbrandshaveacommonendorser.
Keller(2008)proposesfourhierarchicaltypesofabrand;1)Corporate/companybrand(conglom
erateor companyor subsidiary name. 2) Familybrand (brand used in more than one
product category. 3) Individualbrand(brandrestrictedtoone productcategory).4) Modifier
(ameanstosignalrefinementor
differencesinbrands).Corporatedominantstrategyisdefinedasthestrategyinwhichonlycorpor
ate
brandnameisusedinallcommunicationsofthecompany
(Gray
andSmeltzer,1985;Murphy,1987;
LaforetandSaunders,1994,2005).Olins(1989)hasgivenitthenameofMonolithicstrategy
whereas
AakerandJoachimisthaler(2000)andRajgopalandSanchez(2004)nameitbrandedhousestrate
gy while Berensetal.(2002)callitcorporatebranding strategy.Herecorporate brand
symbolizesconglomerate
name,company
nameandhouse/subsidiaryname(LaforetandSaunders,1994,2005;Keller,2008).Grey
andSmelteralsostate thatwhenacompany,essentially operatinginonly oneproductlineusesits
company
brandonly,itissingleentitybrandingstrategy.Inbranddominantstrategy,differentbrand
namesthataredifferentformcorporatebrandareusedfordifferentproductsofthecompany (Gray
and
Smeltzer,1985Murphy,1987;LaforetandSaunders,1994,2005).Olins(1989)hasgiventhisstr
atefy
thenamesofbrandedstrategy
whereasAaker
andJoachimsthaler(2000),andRajagopalandSanchez (2004)nameithouseofbrandsstrategy
whileBerensetal.(2002)callitstand-alonestrategy.Laforetand
Saunders(1994)classifythisstrategy
intotwocategories;first,Monobrandingwhencorporateidentityis
disclosedandsecond,furtivebrandingwhencorporateidentityisnotdisclosed.
Mixedbrandingstrategy
isthestrategy
inwhichtwobrandnames,thatiscorporateandindividualproductbrandnames,areused
togetherwithvaryingvisibilitiesforbrandingproduct(Gray
andSmeltzer,1985;Murphy,1987;LaforetandSaunders,1994).Olins(1989)hasnameditendor
sedstrategy
whereasAakerandJoachimsthaler(2000)andBerensetal.
(2002)nameitsubbrandingstrategy
whileRajagopalandSanchez(2004)callit
brandendorsementstrategy.AakerandJoachimsthaler(2000)dividethisstrategy
intothreecategories; first, masterbrandas driverstrategywhen corporatebrand is
moreprominentlyvisible.
Second,
sub
brand
ascodriverstrategywhentwobrandsaregivenequalvisibility prominence.GrayandSmeltzer(1985)
nameitequaldominancestrategy
whileMurphy(1987)namesitbalancedstrategywhereasLaforetand
Saunders(1994)nameitdualbrandingstrategy.
Third,
endorsementstrategywhen
corporatebrand
receiveslessemphasisthanproductbrand.Endorsementstrategy
hasbeenfurtherclassifiedasstrong
endorsement,linkednameandtokenendorsement.LaforetandSaunders(2005)arguedthatcom
panies can also usemorethan two brands together foraproduct and called it multi-branded
strategy.
METHODLOGY
Theresearchdesignchosenisbothexploratoryandconclusiveinnature.
Thisstudyisdoneusingthe secondarydata. Exploratory methodhasbeenadoptedtoanalyse
thebrandingstrategiesofselected
MNCsinhaircareproductssegmentofFMCG.ThebrandingstrategiesoffourMNCswhichspeci
alize
inhaircareproductsinIndianmarketareanalyzedindetails.Thisstudyisrestrictedonlytothehairc
areproducts ofFMCG sectorinIndian markets.
4PS OF SUNSILK
1. PRODUCT
Point Of ParityFor an offering to achieve a point of parity on a particular attribute or
benefit, a sufficient number of customers must believe the brand is good
enough on that dimensionLike others SUNSILK consists of such POPs
are:1.Dream soft & smooth2.Stunning Black Shine3.Lusciously Thick &
Long4.Anti-Dandruff Solution5.Hair Fall SolutionPoint of Difference
(POD)With point of difference, the brand must demonstrate clear
superiority. SunsilksPODs isCo-creation. They came with this idea to grab
Branding Decisions:
Branding strategy is one of the most vital decisions taking by marketers. It is a
strategy,which brings lots of positive feedback for a firm.
Individual name:
Unilever follow individual name for setting brand name for their different products,
such as Sunsilk, Dove (Shampoo), Ponds, Fair & lovely, Dove for skin care
Brand Elements:
Brand elements can play a number of brand building roles. Brand elements are those
trademark able devices that identify and differentiate the brand.
Branding strategy
Pink Sunsilk with yoghurt proteins:Dry hair needs wholesome conditioning, extra
shine and style. New Sunsilk with yoghurt proteins makes the dry hair full of life. Its
especial ingredients moisturize each hair right to its tips leaving it shiny and beautiful.
Orange Sunsilk with active nutrients from Citrus Extracts:The advanced formula of
orange Sunsilk is the result of the latest research. This shampoois especially designed
for oily hair type that looks flat and greasy due to the excess of moisture. New sunsilk
with active ingredients from citrus extracts cleans the excess oiloff hair while its
nutrients deeply penetrate each hair strand to nourish it.
Sunsilkhas teamed up with seven pioneering global hair experts to bring to Australia the
worlds first co-created product range for all specific hair types.
Hailing from fashion hubs of the world New York, London, Paris, Tokyo and LosAngeles
the seven hand-picked hair experts have a combined 50 years experience working in
the hair industry and were selected for their specialties after an extensive search that
lasted almost a year:
Jamal Hammadi (LA) Shine
MARKET SHARE
Sunsilk
24; 24%
Head& Shoulders
8; 8%
Others
18; 18%
20; 20%
Pantene
17; 17%
13; 13%
Clinic
Dove
CONCLUSION
Inthenewemergingscenario,brandsarebecomingthemostvaluableassetsthatabusinesscanpossess.
Brandsarewealthgeneratorsof the twenty-firstcentury. Whenproductsare notdifferentiatedinthe
factories,they
aredifferentiatedintheconsumersminds.Brandsarecapableoftransformingmundane
productsintoobjectsofdesire.Accordingly,themarketvalueofabusinessisdeterminedby
thenumber
andtypesof brandsitholds.Brandscreate identifiable streamsof earningsfor afirm.FirmslikeHUL,
P&GIndiaandColgate-Palmolivearenothighly
valuedbecauseoftangibleassets
theyhold.Rathertheirvalueisdictatedbythepoweroftheirbrands.Brandpowerisnothingifnoneof
the
customer followingit enjoys.
Ithasbeenobservedthatcompaniesstartwithoneproductbutovertime-asthey
accumulate
manufacturingandmarketingcapabilities-they tendtobecomemulti-product.Asthenumberofproducts
handledby acompany increases,itraisescertainquestions;whatkindofbrandingrelationswouldthey
haveamong
themselves?Companiesdifferintheirapproachestobranding.Westerncompaniesseemto
favourproductbrandingwhilethecompaniesin theeastpracticemega-brandapproach.Acompany can
choosefromavarietyofbrandingstrategies.Productbrandingisdrivenbycustomerlogic.Eachproduct
isgivenadistinctbrandname.Linebranding
is
targetedatamarketsegment.Itseekstoappealtothem
withaconcept.
Usuallylienbrandsoffercomplementaryproductsandholdthemtogetherundera
commonconcept.ForexampleHUL
adoptslinebrandinginsomecase.Rangebrandsextendbeyond
productcomplementary.Rather,the productsunderthe range brandsemanate fromsome area
ofexpertise
orcompetence.A
rangebrandcanhaveapparently
dissimilarproducts
butallofthemshareacommon
expertise.
Umbrellabrandingmeanspromotingallproductsunderacommonname.
Itisfavoured
becauseofeconomies,butthisapproachishighly
deficientfromtheviewpointofcustomerslogic.Firms
coverbrandbecauseoftheirwealthgeneratingpower.They
arenewgenerationassets.DifferentMNCs
adoptdifferentbrandingstrategies
depending
upontheirvisionandgoal.SomeMNCsadoptmultiple
strategiesforbranding forvariouscategoriesofproductsbutsomecompaniesadoptasinglestrategy for
thevarietyofproducts asabrandingstrategy.
Product Mix
Anti- Dandruff
Dry Therapy
Sunsilk Naturals
Sunsilk Black
Scalp
Nutrition
Sunsilk Pink
Protein
Conditioner
Sunsilk Yellow
Sunsilk
Ultramoisturizing
Dry
Therapy
Scalp
Nutrition
Anti-dandruff
Black hair
Shiny hair
Low-price
H&S started operating in the anti-dandruff segment. As a added benefit it also emphasized
on smooth hair.
Target Market
The target market for H&S are the higher middle class people who are brand conscious,
early adopter and who care about the overall health of their hair. H&S targets the people of
middle age men ( in the beginning) having scalp and dandruff problems. At the initial period
of its marketing strategy, it showed advertisement which shows the facts with only one use
of the product, the shampoo gives almost 100% relief from shampoo. It introduced many
other features like menthol, volume boost, and hair-fall therapy for the college going youth
and young professional with hair conscious. H&S took the advantage of physiological
mentality of this user group with adopting ads where prominent actors were used.
Positioning
H&S is positioned as anti-dandruff product which clear flakes with one wash. As the market
leader it has successfully acquired the niche market of anti-dandruff segment. The effective
distribution channel and deep penetration in the rural market has boosted up the sales in past
year making it a leader. According to annual report of H&S 2011 the quote states "H&S was
relatively small, primarily north American brand a decade ago. We invested in combination
of marketing and product innovations and began to expand the brand globally. Since then
we have more than tripled sales and H&S is now the largest shampoo brand in the world."
It was during 2005 that Head & Shoulders began its aggressive campaign to regain the lost
market.The brand roped in the bubbly PreityZinta to endorse the brand. Earlier Ajay Jadeja
had endorsed the brand.During this period, the brand also extended its positioning from
Anti-Dandruff to "Soft hair + dandruff removing " proposition. The brand also introduced
different variants like Menthol, Aloevera, Black, Naturally Clean,smooth & silky to
increase the product line depth.
The brand also changed ZPT formula to Vitazinc to support the new positioning. Along with
the new brand ambassador, the brand also talked about eliminating 5 problems arising out of
dandruff : Flakes,Irritation,Itchiness,Dryness and Oiliness.
Recommendation:
Although Head & Shoulders has aggressive in the market, it is still lagging behind Clinic
All Clear in terms of creative campaigns. Globally, Head & Shoulders had come out with
some highly creative campaigns which was not replicated in South Asia by the agency.The
brand is now available in a new look and with the aggressive campaigns, the brand hopes to
keep its Head High. The brand should try to make more creative campaigns.
s
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LOGO
The colour of the font will be bold black SUNSILK with a colorful
pack.
Color
There is a diverse verities of colour have been introduced in recent
times in Sunsilk.
Shape
This brand has a shape of petite tiny balls with blaze including that
this product is with diverse colors and it also shows the shape of long
hair.
Font
The name and the logo will be appeared has a high lightened of this
product with eye-catching colors.
Slogan
For this brand the slogan is Life Cant Wait