"INDIAN MARKET"- A TWO WAY CONCEPT

Now, we are going to make some study about the nature of Indian market. In a simple words we can say that the Indian market is a two way concept. For the same product there are several demands at different area. The major cause of it is Heterogeneity of Indian market. It is divided into two kind of market. 1)Rural Market and 2)Urban market. The nature and characteristic of both kind of market is very different from each other. One side, the customers of urban markets are looking for a good quality and brand name, but at the same time, the customers of semi-urban and rural areas are looking for a good quality in cheaper price. Due to such kind of heterogeneity of market, no any company can produce only one product in the market.

Proctor and Gamble,a leading FMCG company of world has changed his strategy to lead Indian Market. The very popular detergent brand "Tide" has been introduced by the company as compare to Surf Excel of HUL. But for leading the rural market, the company diversify it's product line and introduce a 200gm economy pack of this detergent at Rs. 10.This strategy makes the brand an all rounder. Now, it works effective in both formats of market as well as only one single brand of P&G has been able to compete all the economy and premium brands of HUL. This is called the dual concept of Indian market.

The Five Basic Questions asked by a rural customer in India:-

1)What is the price of the product?

2)Is there any free scheme with it?

3)Give me some more discount on MRP.

4)If the price of your product is same as the other branded product, than I will go for that product.

5)Good Packaging. ( Because they wants to use the empty packs for other use).


Five Basic Questions Asked By An Urban Customer:-

1)What is the company of the product?

2)Show me the contains?

3)Is it latest manufactured or not?

4)Is there any guarantee or warranty with the product?

5)Show me some latest manufactured.




This is all about the dual concept of Indian market. It is very difficult to make coordination between both the market, but the marketer who is able to make it will become the leader of market.

Example- Dabur Chyawanprash, Clinic Plus Shampoo, Tide Detergent, Hero Honda Motorbike, Vimal Garments, Reliance Telecommunication etc.

THE TIME MARKETING

Time marketing is a very latest concept of marketing practice. In very simple words, the Time Marketing refers to "Introduced your Product, Before your Competitors". In the modern era, there is a lot of implementation of time marketing. Suppose, you are a marketer and you have develop a fine marketing plan, but due to any reason, same kind of product with same marketing plan, your competitor has been introduced in the market , then what will happens with you? At the time you have nothing to do. This is called time marketing.

Time marketing focus on open your mind with your eyes and ears, don't give a single chance to your competitor. There is also a reverse effect of time marketing. Time marketing not only suggest you to introduced your product before others but also it refers to wait for a suitable time for introduce your product. It depends on balancing of time in the field of marketing.

The implementation of time marketing is much more in film industry. They properly use time marketing before releasing their latest film. Like film industry, there are also many implementation of time marketing in all other industries.

In India, in the year 2003, coke has been introduced a 200ml bottle of coke for Rs. 5. It was a huge success for the company and increased the sale of the product. After some times, Coke's closest rival, Pepsi also introduced same in Rs. 5,but it was too late. Airtel introduced a scheme of life time connection in just Rs. 999. It was a very cheapest and save scheme for the customers at the time which turns a good job for the company, after several days,some other companies also introduced same scheme, but Airtel dominates the market. There are many stories like that which proves the value of time marketing in the market.

The Basic Mantras of Time Marketing:-

1) Wait for a suitable time for introduce your product.

2) Do your steps before your competitor.

3) Make a balance between time and introduction of product.

4)_Be a front foot player, not a back foot player.

TV COMMERCIALS : THE GOLDEN DAYS ARE GOING TO AN END.

There was a time, when TVC plays life blood for the advertising for a product. In 90'S The people wishes to watch TVC's with more eagerness. As the result, they coincidently keep in touch with the particular product. In 90's, people goes to the stores and demanded for any product by using the tagline given in the adds. Like- "Fevicol kaa joor hai, tootega nahi". Customer comes to the market by attracting from the lovely TVCs. We can't forgot the TVC of Dhara oil called "Jalevi". Like that there was a lot of popular advertises which creates a bigger impression on customer mind. Peop-le loves to watch the TVCs.

But as per there is a life cycle of anything, the life cycle of TVCs in India is comes to an end. Today the advanced technology and digital media makes the TVCs more attractive and modern, but the people hardly takes an interest in watching in such kind of TVCs. The plenty of TV channels and people's busyness is also a major reason behind it. Today, a common Pearson having a TV with a cable connection. So, he wants to utilized hi cable as much as possible. As the result, he don,t watch TVCs and change the channel at the time when advertise shown on T.V. It is a major problem facing by T.V media of advertising. But most of the major companies are not getting this point and they are spending much and much money on the TVCs, due to competition with rival which in not good for the point of view of company.

Reasons for the downfall of TVC's.:-

1) Plenty of availability of multi channels and different program's. People not take interest in watching the TVC's.

2) Extra busyness and less time with people.
3) Easy and cheaper availability of internet and relating devices.
4) Decline stage of advertising in India.
5) Other means of advertising are running effectively, like- canopy promotion, sales promotion, direct marketing.

6) Easy availability of any information related to the product on internet.
7) Repeating the same video many times a day.


So,The days of DD1 are gone. Now a days expending more on the TVC is just wasting money.So, major companies should take step on this point

This is How HUL is No. 1

30 years has been past away, but the first choice of people of asking for Lux as their first preference as a toilet soap have not been changed. Today, when I get up in the morning and go to bathroom , I remember my childhood days after looking at same Pepsodent toothpaste. The brands of HUL is just like a regular brands of customers from age to age. Logos has been changed, packaging has been changed, but the choice of customer's has not been changed.

If we think about the reasons that why HUL is best in India in spite of huge competition, we will find that HUL is great because it is great, it's strategies are great, it's aggressive marketing is great and last but not least it is only Nitin Pranjape who remain it no. 1 today also.

I am not going to publish more statements or mesmerism words, I am just want to share some of great strategies of HUL and Pranjape.

In the time of 1990 when the concept of TV commercials was very new for the people, HUL dominates the market and published it's brands aggressively by TV commercials.
Some of the commercials like Liril soap, Lifeboy soap, Surf Detergent, etc. were the most lovable TVCs at the time. "Tandarusti kaa raksha karta hai Lifeboy" was the one of the favorite song of every child.

in 21st era, HUL comes with a different concept called canopy promotion which becomes a benchmark in advertising and sales promotion. Once again HUL become the market leader in all segments.

At the present time, according to great Pranjape, HUL is planning to sustainable production for it's all products. Right now HUL's products will define their own footprints.HUL products are manufactured in over 40 factories across India. Over 2000 suppliers and associates are involved in its operations. The giant HUL distribution network comprises of around 4000 redistribution stockists and 6.3 million retailer outlets. The wide-spread distribution network reaches almost entire urban India and around 250 million rural consumers. The HUL's products will be made after consider the environments. The super supply chain management and production system of HUL will be the idle for every company.

As a responsible corporation of the country, HUL has adopted the triple bottom-line approach to address environmental and social concerns. Following are the three key pillars in this approach:

PROSPERITY PEOPLE PLANET
(ECONOMIC) (SOCIAL) (ENVIRONMENTAL)

From the Behalf of The World of FMCG, I Pravin Tripathi wishing a good luck to HUL

CAN THE INTERNATIONAL BRAND'S ENTRY IN INDIA BECOME PROBLEM FOR LOCAL FMCG BRANDS?

From last few years, we are founding that there are a lot of International MNC FMCG companies entering in India with their products in different segments. These companies includes the top companies also (ex. Lore'l, Kraft, Tura, Cape Gemini etc.). In one hand these companies are totally diversifying the Indian market with different products , at other side, these are creating a tough competition for our national as well as prior ones. There was a time when HUL become market leader in all the segment's with having more then 50% share in every segment, but now it is trebling in it's core business also. This is not only happening with HUL, but it is the same story with other brands.

In the year 2001-02, there was a US based company, named Amwey, entered in India with it's chain of cosmetic products and become a good success story in India. This company has not been much successes in rural market due to it's high price. But it was just an entry, within couple of years, there was a lot of MNC companies entered in Indian market even they are also providing the products in affordable prices. We have an example of Lore'l, It enters with It's global leader brand Garnier, at the time it was introduced in very limited segments (ex.Hair color) and preferred by only middle and higher class people. But at the present time, there are a line of products of Lore'l are available in the market. These products are also about the same price range as it's competitive products are available. Like that, a lot of companies are giving more competition for the national brands.

Now a days nobody like to use the products of our domestic companies. It is a problematic issue on which the govt. has to look upon and take vital steps. Otherwise our domestic companies will go down as well as no any new entrepreneur will be bother to start new venture in the FMCG sector. The govt. should limited the entry of MNC's in India.

ITC Q4 net profit surges 27% to Rs 1,028 crore

Diversified business firm ITC today reported a 27 per cent growth in its net profit to Rs 1,028.2 crore in the quarter ended March 31, 2010.

The company had a net profit of Rs 808.99 crore in the quarter ended March 31, 2009, ITC said in filing to the Bombay Stock Exchange (BSE).


The hotel-to-tobacco major has declared a special dividend of Rs 5.50 per share of Re 1 each and a dividend of Rs 4.50 per ordinary share for the financial year ended March, 2010.
The Kolkata-based company also said that its board will meet on June 18, 2010, to consider the issue of bonus shares.

During the quarter, the company's net income grew by 29 per cent to Rs 5,131.61 crore from 3,985.92 crore recorded in the same period in the 2009-10 fiscal.

In the 12-month period ended March 31, 2010, the company had a net profit of Rs 4,061 crore, as against Rs 3,263.59 crore posted in the year-ago period.

ITC's net income during the period jumped to Rs 18,382.24 crore from Rs 15,806.54 crore recorded in the same period of the previous fiscal.

Shares of ITC were up by 2.23 per cent and were quoting at Rs 268.40 in the late afternoon trade on the BSE.

HUL’s biggest national roll-out may add Rs320 cr sales in first yr

Mumbai: Consumer goods firm Hindustan Unilever Ltd (HUL) could add around Rs320 crore to its revenue, following the roll-out of its most ambitious trade initiative called Perfect Stores, said an executive at Technopak Advisors Pvt. Ltd, a retail consultancy firm.
For HUL, India’s largest packaged consumer goods company by revenue, it is one of the largest and fastest roll-outs of a marketing strategy to get back its lost market share.

In the first three quarters of fiscal 2010, HUL’s revenue was Rs13,208 crore.
The maker of Lux, Wheel, Dove and Kissan tomato ketchup, HUL is rolling out the Perfect Stores concept across 80,000 stores in 72 cities with a population of at least 100,000 in the next six weeks. The objective is to raise sales in these stores by 30%. All these stores will have similar in-store display and merchandising.
Go-to-market: The firm will extend the new concept to the top 80,000 stores of the one million retail outlets that it reaches out to directly. Indranil Bhoumik/Mint
Since the average size of a neighbourhood grocery store is around 200 sq. ft and sales per sq. ft are Rs6,000 a year, typically one such store has a turnover of Rs12 lakh a year, according to Raghav Gupta, president of Technopak Advisors.
If HUL products account for 25% of such sales, then the sales of these products at one such store will be to tune of Rs3 lakh a year, he said.
Going by Gupta’s calculation, if this initiative leads to a 15% increase in sales, then HUL products will record a rise of Rs45,000 a year in each of these 80,000 stores. The overall increase in sales of HUL products at these stores will be Rs360 crore and, after removing the retailers’ margin, the growth will be Rs317 crore.
Gupta, however, has taken a conservative estimate of 15% rise in sales while the company itself expects a 30% rise.

Perfect Stores is the last mile of HUL’s go-to-market strategy that was started about three years ago. The company aims to rationalize its distribution network, make it more efficient, deliver stocks to retailers faster and reduce inventory on their product shelves.

Traditionally, HUL took time to react to competitive pressures as it had a pipeline of stocks to exhaust. It typically took 10-12 weeks for price cuts to reach its customers. With a quick turnaround of stocks, the company is aiming at a zero or, at the most, one-day stocking level.
Ahead of the roll-out, it ran a pilot in January-March in Coimbatore, Tanali (Andhra Pradesh), Chandigarh, Bhubaneswar and Thane.
Now, the Perfect Store concept has been extended to the top 80,000 stores of the one million retail outlets that HUL reaches out to directly.
The company’s joint venture Hindustan Unilever Field Services Pvt. Ltd, which was formed for modern trade channels with Smollan Holdings, an in-store execution and field services firm in South Africa, in November 2007, has now been extended to cover general trade.

The national roll-out began early this month, and in the first week, HUL created around 20,000 Perfect Stores.

“The creation of Perfect Stores has been made possible due to a three-year history of the stores sales,” said Suhas Jain, a supervisor at Mumbai with HUL.
“There has been an increase of 30% in sales in Perfect Stores,” said Hemant Bakshi, executive director (sales and customer development) at HUL.

The focus on general retail trade is among one of the many initiatives that the Anglo-Dutch Unilever’s Indian unit is looking to double its revenues.
Over the year, it has been engaged with rival Procter and Gamble Co. in price wars and legal battles over washing powder supremacy.

General trade accounts for 97% of the overall consumer packaged goods industry in India and grew at a rate of 13% in 2009 in value terms over a year ago, according to Nielsen Co., a market research firm.