INNOVATIVE MARKETING

- Prepared By Gaurav Bhoi-6 Mukesh Jain -17 Namrata James-18 Rina Jani-40 Rahul Sonvane-47

WHAT IS INNOVATIVE MARKETING

A marketing innovation is the implementation of a new marketing method involving significant changes in product design or packaging, product placement, product promotion or pricing.

Marketing innovations are aimed at better addressing customer needs, opening up new markets, or newly positioning a firms product on the market, with the objective of increasing the firms sales.

The Rural Bharat and Urban India

India has 2 economies 1. The rapidly growing Urban India housing the worlds best IT firms and the worlds biggest slums. 2. Rural India, which still depends on subsistence agriculture Due to the vast difference in the economies, lifestyles, tastes and accessibility, different strategies have to be adopted to enter each segment. Strategies would differ based on VS

 Product: Rural Bharat: Basic necessities. Urban India: Discretionary items and basic necessities Price: Rural Bharat: very price sensitive, extremely inelastic, the lower the price, the better Urban India: looking for the price quality balance. Just low price is not sufficient Promotion: Rural Bharat: One to one education, TV, local events and festivals. Urban India: 360 promotion Placement: Rural Bharat: small ration shops, hawkers, local markets. Making the distribution channel very difficult and far flung. Local and efficient distribution is essential to ensure penetration Urban India: all modern trade channels, making the distribution easier and manageable.

The 4 As rule for innovating in Rural India Availability

Ensure high network of service centers and personnel
LG: 230 service centers, 65 remote area offices, 2600 mobile service personnel
Coca cola: has evolved a hub system in Rural India to ensure full supply Hindustan Unilever: to serve remote villages they use all forms or means of transportation from rickshaws and bullock carts to boats

Supply chain management: due to lack of connectivity it is very essential to have efficient and effective Supply Chain
HUL Shakti: using rural women as distributors of HUL products Tata: uses NGO network to distribute products Reliance Retail: uses procurement from local villages to supply to the neighboring cities

 Affordability
Provide cheap prices by introducing smaller unit packs
Godrej: introduced its key proposition in soaps and fairness cream in 50 gm packs for Rs 4-5 for Madhya Pradesh, Bihar and Utter Pradesh

Coca cola: grabbed the rural India market share by introducing returnable 200 ml glass bottles of Coke for Rs 5, to bridge the gap between soft drinks and locally available options like tea, lemon water and butter milk
Hindustan Lever: launched its best selling soap Lifebouy at Rs. 2 for 50 gm LG launched its first low priced TV for Rs 3000

 Acceptability: Offer tailor-made products suited for the needs and lifestyle of the market Coca Cola: understanding the problem of lack of electricity and refrigerators in rural areas, Coca Cola provided low cost ice boxes and thermocol boxes HDFC: tied with NGOs to offer low price insurance covers Easy to understand LG: introduced regional language games in its low cost TV

 Awareness : The means of awareness is very different in Rural India in comparison to Urban India One to one contact program: Use of personal interface is very important to gain trust, demonstrate, induce trial and educate Promotion: Entertainment Cultural events example religious plays and performances Dances, folk performances Local annual fairs Annual Hatts (local marketplace) Weekly Marts Mobile vans

The Marketing Mix For

Innovative Marketing
Price (value for money, balance

between low cost and good quality) McDonald's : value pricing and bundling strategy, Happy Meal, Combo Meal, Family Meal which helped drive sales volumes.

 Package (local terms, appealing graphics)

Coca Cola: Associated the term Thanda (cold) with coke, the term is a generic one which is used to refer to anything cold in North India. To make Coke part of the common culture they ran campaigns to get people to associate Thanda with Coke as well.

Promotion (Movies, bollywood and tollywood actors, local icons, sports) difference in promotion tactics based on region
Gillette: Use of sports as key promotion vehicle, use of Rediff (Indias leading website for news and mail) and Zapak (Indias leading geaming website) to market its product

 Placement ( supermarkets, local Positioning

groceries, all modern trade channels)

ITC Fiama de Wills Shampoo: entering an over crowded category dominated by MNC brands, ITC noticed that products are divided based on Cosmetic and Natural offering. They decided to combine these 2 benefits and offer the best of both worlds.
Once all these criteria are met then the middle class Indians will become purchasers with a high degree of loyalty to a specific brand

PLACE

Facebook Marketing An Innovative Market Place For Online Entrepreneurs

Facebook is indeed not only for the lonely hearted who wants to make millions of friends online, but it is also for the entrepreneurs with the launch of Facebook marketing. It is a place where sellers can showcase and promote their products and services online that surely connects a seller instantly to millions of potential clients. Marketing on Facebook is a good opportunity for entrepreneurs who do not have the budget to rent locations to build shops where they can market their products. By just creating a Facebook account, one can already establish an identity that will connect him/her to other users and online sellers.

INNOVATIVE PRICE STRATEGY

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WORLD TENNIS MAGAZINE

World Tennis magazine sold a lot of ads in the issues before and after Wimbledon. They offered a Wimbledon Package that included ads, list rentals, a trip to Wimbledon with plane, hotel, match tickets, and a meet-theplayers party , hence, he changed the offer structure. He innovated his offer, thus removing the competition and making it easier to pull in much larger profits.

PACKAGING INNOVATION

 Dumbbell Packaging harnessing the power of cleaning to make you stronger.

 Green berry tea, bird shaped tea bags Designed by Natalia Ponomareva, from Russia. This design is currently just a concept, but apparently the wings unfurl in the hot water.

 Yogurt with a built-in spoon from Cho Hyeseung, the yogurt lid turns into a spoon.

PROMOTION

Promotional Products
Promotional products or items are pieces of goods and commodities given away for free by marketing and communication programs. Typically, these are stamped or bedecked with the name, appellation, emblem or message of the particular company or group in question.

These 2 glasses were stuck on to the bonnet and back of my car by someone at a crossing, and I spent a good 20 minutes trying to shake them off by swerving the car. On reaching office I took them off and found the magnet which said "Magnet sticks to Iron a Class V question SRK Saying Paanchvi Paas.

Four Key Elements of Innovative Promotion

1. Highly innovative promotion campaigns employ the age-old craft of storytelling, sometimes allowing the user to fill in the missing pieces of the story.

2. Highly innovative campaigns draw the user in often engaging the user in the story or campaign.

3. Innovative campaigns draw their creativity from the intersection of 2 or more marketing devices.

4. Highly innovative marketing utilizes an element of surprise and delight.

 Aircel: Telecom, started its journey in Mumbai and is now in all other metros. On July 13 and 14, when heavy rains lashed the city. People stranded at the subway used the raft to move around and men in Aircel branded Tshirts were available to help commuters.

BINGO

Bingo used a unique promotional strategy to reach the MASS.

PRODUCT INNOVATION

NANO CAR
Tata Motors launched world's cheapest car, Tata Nano in India in March 2009. It is fast, swift and most importantly easy on the pocket. In November Tata Motors launched a brand new variant of Tata Nano, which will be available to the consumers in new colours and would come with a more powerful petrol motor that will deliver a superb mileage of 25.4 km per litre.

ChotuKool by Godrej: Cheapest refrigerator

Understanding the need for a cheap, lightweight fridge which consumes less electricity Godrej came up with the cheapest refrigerator worth Rs 3250/ Innovative distribution strategy: they employed village girls to distribute the product, increasing trial and reducing costs by 40%

Garnier 2 in 1 Shampoo: Convincing the Consumer to Think Differently

Background
Indian consumers traditionally oil their hair the night before washing, to lubricate and give it shine The following morning, shampoo is used and the oil removed So, shampoo and oil do not naturally go together in one product

Challenge
Can Garnier convince the consumer that shampoo and oil can go together as a 2 in 1 proposition?

 Does the product meet the needs of the consumer?

Yes The oiling and shampooing tradition is time consuming: time which consumers today do not have. If this product suits both needs and shows equivalent results as actual oiling it would be accepted

Does the product already exist in the market?

No: its new and unique

Result
Due to its uniqueness, the product has induced trial The acid test for consumer retention is the actual product quality and effect

Volvo mini Car

The Volvo Car Corporation has built a mini-Volvo that takes care of very special transport requirements during the European Athletics Championship in Gothenburg.

Thank You