L'ORÉAL INDIA

L’Oréal India Private Limited is a wholly owned subsidiary of L’Oréal S.A. Headquartered in Paris, L’ORÉAL is the global leader in cosmetics with 5 key expertise in hair care, hair color, skin care, make-up and fragrances. L’Oréal’s leadership is achieved through cutting-edge technology with a portfolio of well-known brands that answer all beauty needs and are distributed in all channels.

Each brand benefits from considerable investments in research made by the L'Oréal Group. The Group's research efforts, unique in the beauty industry, permit each brand to benefit from formulas specifically adapted to the needs of men and women worldwide, within each market or distribution circuit that is present.

L'Oréal India has over 600 employees and has a strong track record with consistent double digit sales growth yearly.

In India, L’Oréal operates through four divisions:

- Consumer Products Division

- Professional Products Division

- Active Cosmetics Division

- Luxury Products Division

Diversity is a core value for L'Oréal. From the wide variety of people who make up its teams to the products developed, diversity has always been a priority for L'Oréal.

Our people

L’Oréal’s ambition is:

• to reflect, in its teams and at every level, the diversity of its clients (in terms of nationality, ethnic or social origin, age...), coherently with its employment pools,

• promote the access of women to high-responsibility position and a better gender equity in jobs,

• to promote work for disabled people,

• to accumulate skills and capitalise on the experience of its employees, taking advantage of the cultural diversity of its teams, extending careers and making use of experience.

The principles behind the Group’s action:

• respect for its requirement for excellence in terms of its core competencies and individual performance,

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• attract candidates from outside its usual talent banks and identifying diversified profiles which will bring new perspectives,

• focus on a managerial culture which fosters the inclusion of all employees and capitalise team diversity.

L’Oréal has decided to focus its action on six priority points:

• nationality,

• ethnic origin,

• social origin,

• gender,

• disability,

• age.

The Group is active in the following five areas:

• training on diversity,

• recruitment and inclusion,

• career management,

• communication.

Diversification of sourcing:

The Group has established multiple partnerships in France, in the USA, Latin America and in South Africa with several Universities, associations and recruitment agencies involved in diversity.

These partnerships enable us to gain access to various candidates of different backgrounds.

The Group also takes part in varied recruitment forums dedicated to candidates from minority groups or dedicated to women.

Diversity Training for managers:

Since the end of 2006, a specific diversity training program is being rolled-out to 8000 managers in Europe (over 32 countries). This training aims to involve, give responsibility to and help managers in implementing the Group’s diversity policy. This training at European level joins the training that has been underway in the USA for two years where more than 2000 have already been trained.

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Diversity and Social Cohesion Observatories:

Since 2006, 23 Diversity and Social Cohesion Observatories have been set up in France. They are comprised of staff representatives, members of the personnel department and volunteer employees. Their objective is to promote respect for diversity and non-discrimination in the field, implement initiatives and follow-up on them. The group process involves meeting to share information regarding the measures implemented to fight all forms of discrimination, to promote diversity and equity. The implementation of Observatories on an international level has already begun in various European countries.

Some Results:

At L’Oreal, at international level, 54% of managers are women. They account for 34% of the members of the management committees . 53% of managers promoted in 2006 were women.

In the Group, there are 112 different nationalities and 60% non-French people are members of the management committee.

In the USA in 2005, minorities represented 19.8% of all managers and 33% of all employees. In South Africa, 51% of managers are “PDI” (Previously Disadvantaged Individuals).

FOR WOMEN IN SCIENCE

As a company that believes in good corporate citizenship, L’Oréal is keen to contribute to projects that serve the wider community and that reflect the values we have upheld for almost a century. In every country where we do business, we support projects that contribute to the community at large through philanthropy and long-term partnerships. These local initiatives reflect our longstanding dedication to such worthy causes as promoting women in science, community solidarity and educational opportunity.

The most symbolic and notable example of L’Oréal’s societal commitment is the international corporate programme “For Women in Science”, launched in partnership with UNESCO in 1998. This programme promotes the role of women in scientific research and thus helps to encourage young women around the world to enter this field, so critical to the future of our society.

In 2006, of the 230 members of the French Academy of Sciences, only 16 were women. From 1903 to 2006, only 12 out of 516 Nobel Prizes for Science were awarded to women. The For Women in Science partnership aims to address this underrepresentation of women at the highest levels of science.

“I am delighted to see the role of women in science. The commitment of a large corporation like L’Oréal alongside an organisation like UNESCO is a perfect example of the partnerships we can forge with the private sector. A cooperative venture like this, which aims to involve more and

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more women in the great scientific adventure, leads to progress not only in science but also in society.”—Koïchiro Matsuura, Director General of UNESCO.

For L’Oréal, women and science are the two best vehicles for progress for the global community. It was necessary therefore to encourage not only the women who are already helping the modern world to move forward through their research work, but also female students who will be following in their footsteps in the future.

Because L’Oréal’s business is at the centre of people’s everyday lives and well-being, the group is closely involved in the life of the communities in which its facilities are located. L’Oréal has a duty to conduct itself as a socially responsible company and seeks to support projects that are for the public good, in the form of long-term sponsorships and partnerships.

These are often local initiatives focusing on specific, clearly identified issues—solidarity, education— and are consistent with the values that the group has advocated for almost a century. The aim of these initiatives is to provide a strong foothold in the economic and social life of the countries in question. The group endeavours to preserve what gives these initiatives their strength and effectiveness, namely the independence of our locally-based companies and their ability to adapt to specific cultural environments.

Purchasing policy

For L’Oréal, purchasing is not just a question of reducing costs and prices. There is a fundamental ethic which must be applied to factories, distribution warehouses and subcontractors.

For this, social audits have been set up via external agencies which audit all the group’s suppliers in terms of the following points:

• Child labour

• Slave labour

• Health and safety

• Right of association

• Non-discrimination

• Disciplinary practices

• Sexual and moral harassment

• Remuneration

• Work time

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• Relationship with subcontractors and suppliers

To verify these different dimensions, there is a questionnaire made up of 10 sections of which one is entirely dedicated to non-discrimination. The issue is therefore to grade dysfunctional policies via this questionnaire.

Before carrying out the audit, suppliers must pledge to respect ethical standards. They are therefore informed that they must respect these points and that they will be subsequently audited to check their adequacy.

So that the information resulting from these audits can be passed on to all the group’s subsidiaries, there is a global database which allows this information to be shared. Since 2002, 350 audits have been carried out.

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Brands

BECAUSE YOU'RE WORTH IT

The French brand, L'Oréal, one of the world's top beauty care brands, offers men and women on every continent beauty and personal care products that incorporate the latest scientific advances. Visionary formulas, upscale presentation and products that are a pleasure to use: L'Oréal provides affordable luxury for people who demand excellence.

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L'Oréal is: - A brand that is involved in all facets of beauty care, from skin care, hair care and hair coloring to make-up and styling products. Products are marketed under such famous names as Elvive, Studio-Line, Dermo-Expertise and others.

- Parisian beauty as embodied by the world's most glamorous women, including Laetitia Casta, Aishwarya Rai, Milla Jovovich and Andie MacDowell.

- The expertise of top beauty specialists, make-up artists, hair colorists and dermatologists, including James Kaliardos for make-up and Christophe Robin for coloring.

- And, above all, the latest innovations from L'Oréal Laboratories, for beauty products tailored to your specific needs.

Loreal

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Face skin care

Hydration – Hydrafresh Whitening – Pearl Perfect Anti-Ageing (Preventive) – Youth Code Anti-Ageing (Curative) – Revitalift

Hydrafresh

Foaming Gel - For normal to combination skin

Product benefit

Delicately fragranced, the Hydrafresh Foaming Gel leaves your skin feeling instantly refreshed.

Gently cleanses the skin everyday: Instantly removes make-up, cleanses skin thoroughly and eliminates all impurities for an impeccably clean skin.

Application

This innovative gel texture lathers abundantly in contact with water, rinses off easily and leaves your skin soft and hydrated.

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Pearl Perfect

Facial Foam

Home Skincare Cleanser Pearl Perfect Facial Foam

Pearl Perfect

Facial Foam

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Product Benefits Application Innovation

Product Benefits

Pearl Perfect Relighting Whitening Facial Foam:Instantly removes make-up, cleanses skin thoroughly and eliminates all impurities.Contributes to a complete Whitening effectiveness.Brightens the complexion day after day: Helps to clear off excess dead cells fromt he skin's surface for a brighter and more luminous skin.

Application

This innovative foam lathers abundantly in contact with water and rinses off easily, leaving your skin extremely soft, clean and comfortable. Use daily every morning/ evening.

Innovqation

This innovative foam lathers abundantly in contact with water and rinses off easily, leaving your skin extremely soft, clean and comfortable. Use daily every morning/ evening.

Anti-wrinkle and firming skincare range that reduces the appearance of wrinkles and leaves skin feeling firmer.

Until you want a permanent lift there’s always Revitalift.

Until you want a permanent lift, there’s always Revitalift.

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/skincare/cleansin

category=Men;tag

EVERY DAY, FIGHT AGAINST THE 5 SIGNS OF FATIGUE WITH THE MEN EXPERT HYDRA ENERGETIC SKINCARE RANGE.Men Expert Hydra Energetic

Specifically for Men

L'Oréal Paris introduces a range of products designed exclusively for men. Whether it be skin care with Men Expert, or Styling with Studio Line , discover our products dedicated to his specific needs "Applying make-up is a moment of creativity where women can really indulge themselves" James Kaliardos, Make-Up Artist

PERSONALISED BEAUTY

Discover the L’Oréal Paris cosmetics range - a complete range of make-up from foundation, mascara and lipstick to eyeshadow, blusher and nail varnish. Discover how to create glamorous or natural-looking makeup looks, smoky eyes or flawless skin. Learn how to apply eyeliner or bronzer. Read our expert tips, application advice and the latest make-up trends, from catwalk and celebrity looks to mineral make-up.

Comfortable colour. Flawless finishes.

Impeccable finish, glowing beauty guaranteed! James Kaliardos, International Make-Up Artist for L'Oréal Paris helps you to create your perfect look

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PRODUCTS BENEFIT

Warning! The rays of the sun, even invisible, are aggressive to your skin: their effects are more serious than you think. Skin darkens as a result, looks dull, uneven and dark spots can appear… Take action!

Action 1: 360⁰ Turnaround Whitening Action - with UV protection and whitening ingredients for a global whitening action.

APPLICATION

Use all over the face in the morning on cleansed skin. When applied after shaving, White Activ soothes razor burn.

White Activ is enriched with:

1. ADS™ Active Defence System, a powerful soothing active ingredient, helps reinforce the skin's natural resistance against daily aggressions for less tightness and more comfort.

2. Combination of MelanoBlock™ and Vitamin C, 2 active ingredients proven to regulate the production of melanin*.

*in vitro test

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Mascara BlackDon't just volumize, millionize your lashes with our New mascara: Volume Million Lashes.

The in-built excess wiper removes excess mascara for no clumps and the millionizer brush separates lashes for a fanned out lash look.

For your eyes only !

Look sophisticated or natural depending on your mood.

James Kaliardos, Make-up Artist for L'Oréal Paris helps you discover your unique look.

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Lips

Lip service.

Lip colour is one of the easiest and quickest ways to completely change your look. Whether you want to go from subtle to sexy, simple to sophisticated, or classic to edgy, L'Oréal has theperfect formulas, shades and finishes to help you shine.

Beautiful nailsProtect your nails from external damage with L’Oréal Paris Resist & Shine Titanium,  now in 37 brilliant shades!

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Strengthen your nails from within with L’Oréal Paris Manicure Expert. Our make-up expert, James Kaliardos, reveals his secrets on how to keep nails in tip-top condition, as well as staying on trends with the latest colours!

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Casting Crème Gloss is a no ammonia hair colourant that gives your hair visible shimmering tones, glossy shine and covers grey.

Give your hair a total beauty treatment with Casting Crème Gloss, for glossy rich, natural-

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looking colour with visible shimmering tones.

Product benefit

Casting Crème Gloss is a no ammonia hair colourant that gives your hair visible shimmering tones, glossy shine and covers grey.Give your hair a total beauty treatment with Casting Crème Gloss, for glossy rich, natural-looking colour with visible shimmering tones.

APPLICATION

SKIN ALLERGY TEST

IMPORTANT : HAIR COLORANTS CAN CAUSE AN ALLERGIC REACTION, WHICH IN CERTAIN RARE CASES MAY BE SEVERE.

A SKIN ALLERGY TEST MUST BE DONE 48 HOURS BEFORE EACH TIME YOU WISH TO USE THIS PRODUCT.

DO NOT USE :

- If you have already had a reaction to a hair colorant.

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- If you have an itchy or damaged scalp.

BLACK HENNA TATTOO: if you have ever had a black henna tattoo, even a long time ago, you are very likely to have become allergic without realising it. Take no risk. Never use this product unless you have done the skin allergy test 48 hours before use

INNOVATION

No ammonia technology

Innovation: the L'Oréal laboratories create a new generation of no-ammonia colourants.

Casting Crème Gloss: a no ammonia colourant that gives your hair visible shimmering tones, glossy shine and blends away grey. The delicate fragrance makes colouring a luxurious treat!

Casting Crème Gloss is enriched with a patented conditioning complex which helps protect the hair fibre for voluptuous hair: exceptional softness + glossy shine.

Easy + clean to apply, even for beginners.

For extra care for your coloured hair:

L’Oréal, the worldwide No.1 in hair colour*, introduces L’Oreal Paris Colour Protect range. Our first range with a Light Reflecting System. It nourishes hair from root to tip and wraps it with protective care.

Protect and reflect your colour radiance

*AC Nielsen volume and value sales Jan-Dec 2007.

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Brand management is the application of marketing techniques to a specific product, product line, or brand. It seeks to increase the product's perceived value to the customer and thereby increase brand franchise and brand equity. It may also enable the manufacturer to charge more for the product. The value of the brand is determined by the amount of profit it generates for the manufacturer. It will be helpful in increased sales and price or to reduced COGS (cost of goods sold), and reduced or more efficient marketing investment.

Brand Managers often carry line-management accountability for a brand's P&L profitability in contrast to marketing staff manager roles which are allocated budgets. Brand Management is often viewed in organizations as a broader and more strategic role than Marketing alone. While forming a brand company has to go through certain procedures:-

Establishing a set of Brand policies

Identifying Brand promise

Implement measurement of Brand equity

Brand management has undergone a lot of development in recent times. For example, HLL and Proctor and Gamble these companies concentrate on particular set of brands. When a firm position a brand by giving it someone cultural, actual, and historical relevance people start looking at the brand with curiosity, ensuring that the brand never loses its shine. Brand never bored the audience and will keep its freshness for years together.

Brand management is necessary in all aspects of the brand that is:--- Developing the Brand-- Maintaining and Extending the Brand-- Protecting the Brand

Brand Management Aspects:-

Brand Equity:-

It is defined in terms of the marketing effects uniquely attributable to the brand. The brand equity concept stresses the importance of the brand in marketing strategies. It is the

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combination of assets and liabilities associated with a brand that enhances or depreciates the value of the brand. The brand equity has five major determinates are awareness, quality perception, loyalty, patents, trademark. For example, Parle-G, the biscuits major which caters to the mass market, is hoping the brand equity of biscuits in wheat flour (atta) market. Parle is selling atta under the same brand name as its biscuits. Parle-G has launched the atta under the same name to gain advantage from the brand equity of biscuits.

Brand equity refers to the marketing effects or outcomes that accrue to a product with its

brand name compared with those that would accrue if the same product did not have the

brand name. And, at the root of these marketing effects is consumers' knowledge. In other

words, consumers' knowledge about a brand makes consumers respond differently to the

marketing of the brand. There are many ways to measure a brand. Some measurements

approaches are at the firm level, some at the product level and still others are at the

consumer level.

Examples,

a) Lux Soaps:-

This brand has maintained its unique features as “beauty soap bar of the film’s stars”. This brand is making good contribution in the marketing due to its popularity among consumers which is a result of various factors such as attractive packages, quality, price, easy availability.

b) Goderej Storewel:-

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The company is popular among consumer even when many identical cupboards and competitors in the market.

Brand equity is the incremental value of business over and above physical assets resulted from bringing together various elements such as brand name, packaging, advertisement, pricing and so on.

Brand positioning:-

It is the act of designing companies the company’s offer so that it occupies a distinct and valued place in the minds of customer

Brand positioning is a part of brand identity and value proposition that is to be actively

communicated to the target audience and demonstrate an advantage over competing brands.

POSITIONING STRATEGY:-

1. Positioning by price and quality: -

Good quality costs little more. The consumer selects the product at different level of price, offering different quality and decided which is more suitable. For example, this strategy commonly used in construction industry.

2. Positioning by user category:-

The product is associated with the specific user class of people. Famous personalities are used to influences the consumers.

3. Positioning by Product class:

Some advertisers use class associations which are seen substitute to satisfy needs of the

customer. For example, Cadbury dairy milk came with the chocolate box as a gift.

4. Positioning by benefit:

Position on the basis of special benefit. For example, Maggi two minute noodles position itself with “Two minute positioning”, “Fast to cook good to eat”.

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Brand Sponsorship:-

It is form of publicity, which is done by supporting and linking the organization name with a particular event most commonly, sporting events or an activity that involves a large public gathering. Sponsorship of major events it’s a great opportunity for companies to gain publicity.

The company should be cleared about the benefit it is trying to derive out of sponsoring a particular event. First, creating awareness of the brand during the event and developing association and relationship with the brand. Second, from the option available the firm should choose the event that will help to achieve its sponsoring objective. Third, brand easily gets associated with the event. Fourth, it is better to have long term relationship with the event rather the sponsor a new event every time.

For examples, 'Coca-Cola' is one of the top global sponsors of sport. The rationale for sponsoring international and local sporting events is that it is "a natural fit". By matching the brand with world standard events 'Coca-Cola' benefits from the exposure and the associations made between it and the event being sponsored. Equally by ensuring that local events are sponsored the brand is exposed exclusively to a local market and will thus be seen as a local brand. 'Coca-Cola' meets its sponsorship objectives:-

To connect with teens in an interesting and fun way.

To create unforgettable teen moments linked to 'Coca-Cola'.

To communicate the dynamic and leading attributes of the brand.

To be seen as a national sponsor at a local level and global sponsor on an

international level.

Brand Leverage:-

When marketers leverage on brand equity by using the existing brand name for new products, it can be termed as Brand leverage. Marketers resort to this method so that consumers will perceive the new brand as having some of the characteristics of the existing brand. For example, Lux used its brand name to move into the liquid soap and shampoo market. Godrej Fairglow soap brand was extended to its fairness cream.

For example, the manufacturer of Mr. Coffee, coffee makers used its brand name

strength to launch Mr. Coffee brand coffee. While coffee machines and coffee beans are

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in different product categories, there is a strong enough correlation between the two items

that the brand name has a powerful impact on consumers of both categories.

Brand leveraging communicates valuable product information to consumers about new

products. Consumers enter retail outlets equipped with pre-existing knowledge of a

brand’s level of quality and consistently relate this knowledge to new products carrying

the familiar brand. Generally, consumers maintain a consistent brand perception until

disappointed – creating a risky advantage for established brands. Additional advantages

of brand leveraging include:

More products mean greater shelf space for the brand and more opportunities to make

a sale.

The cost of introducing a brand leveraged product is less than introducing an

independently new product due to a much smaller investment in brand development

and advertising designed to gain brand recognition.

A full line permits coordination of product offerings, such as bagels and cream cheese,

potato chips and ranch dip, peanut butter and jelly, etc.

A greater number of products increase efficiency of manufacturing facilities and raw

materials.

A brand leveraging strategy will not work in every situation. A brand leveraging strategy can be extremely successful and profitable if it is correctly implemented and provides new products with the right image. There are important questions that should be considered in order to make the best decision for your brand:

Does the new product fit into the established product family?

Does the brand have attributes or features that easily and effectively carry into new

categories?

Is the brand name strengthened or diluted by representing two (or more) differentiated

products?

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Does your company have facilities necessary to manufacture and distribute a new and

differentiated product?

Will sales of the new product cover the cost of product development and marketing?

Brand Personality:-

Two elements thus affect an individual's relationship with a brand. First, there is the

relationship between the brand-as-person and the customer, which is analogous to the

relationship between two people. Second, there is the brand personality--that is, the type

of person the brand represents. The brand personality provides depth, feelings and liking

to the relationship. Of course, a brand-customer relationship can also be based on a

functional benefit, just as two people can have a strictly business relationship.

It is the description of a brand in the terms human characteristics. Effective personality of a brand to its prospective customers in an idealized sense. It tends to create an identity of a brand with the person. It plays the role of a differentiator. It create link between brand and customer. It is also called AIDA (attention, interest, desire, action) it is a strategic weapon in a cluttered marketplace. Advantages of brand personality:-

It creates favorable brand image of a product.

It helps the advertiser to face brand wars and market competition effectively.

It acts as positive selling points.

It facilitates psychological satisfaction in specific segment.

It facilitates selection of an appropriate advertising media.

For example,

Apple : - Intelligent, Creative,

IBM : - Confident, Expert, Advisor

Disney : - family fun entertainment

Google : - simplicity

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Some famous Brand personalities

Pepsi- Brand Personality:-

Pepsi built youth, spontaneity and irreverence as key elements of the brand personality. Sachin

was shown smashing a windscreen and Azhar swiping a Pepsi. Coke has still a define a

personality for itself.

MRF Tyres:-

Up market, sporty, powerful.

Cellular Phone Personality:-

Nokia:-

The charming European. A widely travelled global citizen, with a sense of humor. Practical

technology. Likes to interact with the people, and explore what they expect, and fulfill those

expectations.

Motorola:-

The live-wire America executives. Powerful as well as resourceful. He believes in hard sell.

Command over technology.

Brand Identity:-

Brand Identity is the unique set of brand associations that the brand strategist aspires to create or maintain. These associations represent what the brand stands for and imply a promise to customers for the organization members.

It is much more comprehensive than brand positioning which communicate to the consumer relevant value to the brand to distinguish from competitor’s brand.

Brand Identity For Close Up Tooth Paste

Core Identity : - Oral freshness which allows young people to come closer to each other

Extended Identity: - quality products from Lever

Value Proposition: - It is a sweet gel, having bright colors. It is only cleanness but freshness the mouth

Brand Identity For Nycil

Core Identity : - A powder which takes care of prickly heat in summer

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Extended Identity : - It is a sweat fighter. It is life style products.

Value Proposition : - Relief from prickly heat in tropical climate and summer. Make life comfortable.

BRAND IDENTITY

Perspective Dimension Remarks

Brand as product Quality

Users

Quality price relationship is kept in mind

Johnson and Johnson are for babies.

Organization Organization attributes Tata Stands for quality. Such an association is

more enduring than one based on product

attributes

Symbol visuals imagery

Metaphor

Heritage

Coca cola’s classic bottle

Kodak and Yellow pages

The journey in palace on wheels, the coaches

of which are the saloons of former Maharajas.

Brand Loyalty:-

It can be considered as conscious or unconscious decision of consumers that is reflected in his expressed intent or behavior to purchase and repurchase it on a continuous basis. Consumer loyalty towards a brand can be attributed to his perception about the brand that it provides the right mix of features and quality. Behavioral scientists argue that brand loyalty occurs because of reinforcement. Cognitive scientist states that brand loyalty is a problem solving behavior. It is aspects of marketers.

Brand loyalty has been proclaimed by some to be the ultimate goal of marketing. In

marketing, brand loyalty consists of a consumer's commitment to repurchase the brand

and can be demonstrated by repeated buying of a product or service or other positive

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behaviors such as word of mouth advocacy. True brand loyalty implies that the consumer

is willing, at least on occasion, to put aside their own desires in the interest of the brand.

Brand loyalty is more than simple repurchasing, however. Customers may repurchase a

brand due to situational constraints, a lack of viable alternatives, or out of convenience.

Such loyalty is referred to as "spurious loyalty". True brand loyalty exists when

customers have a high relative attitude toward the brand which is then exhibited through

repurchase behavior. This type of loyalty can be a great asset to the firm: customers are

willing to pay higher prices, they may cost less to serve, and can bring new customers to

the firm. For example, if Joe has brand loyalty to Company A he will purchase Company

A's products even if Company B's are cheaper and/or of a higher quality. Philip Kotler,

again, defines four patterns of behavior:

Hard Core Loyal - who buy the brand all the time.

Soft Core Loyal - loyal to two or three brands.

Shifting Loyal - moving from one brand to another.

Switchers - with no loyalty they are switching their brand constantly.

BRAND IMAGE:-

A unique set of associations in the minds of customers concerning what a brand stands for and the implied promises the brand makes. The sum of all tangible & intangible traits. It represents all internal & external characteristics. It's anything & everything that influences how brand or a company is perceived by its target constituencies. It is the best, single marketable investment a company can make. Ideas, beliefs, values, culture, name, symbol, packaging, advertising, sales materials. For example, when you listen to the song of U and I and when you see the red color you remember the brand Vodafone. That’s the brand image created by Vodafone on their customer.

Brand image = the image of a good or service which is formed in the customer’s mind

Company image = the valued customers, potential customers, lost customers and other groups of people connect with the organization

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The Importance Of Image:-

1. Image communicates expectations

2. Image is a filter influencing perceptions of the performance of the firm

3. Image is a function of expectations and experiences

4. Image has an internal impact on employees

Research on image built through endorsement of celebrities show that there are three aspects that influence a consumer’s attitude of a brand. These are:

Attractiveness

Trustworthiness

Expertise

Factors affecting Brand Image:-

I. Contents of Advertisement:-

The quality of contents i.e. headlines, the color combination, words can give indented image to the brand. For example, if cheap humor is used in the ad, the brand may get cheap image.

II. Media used:-

The quality of media or programmes aponsors also affects the brand image. For example, Reid and Taylor advertised in business.

III. Price:-

The price factor can generate image for the brands. For example, the premium pricing for Toyota has developed a rich image not only for company but for brand.

IV. Packaging:-

The package must be properly designed in order to give a rich image to the brand as package is the face of the product.

V. Distribution:-The type of distribution by a company may affect the image of the brand. For example, companies enjoy goodwill in the market can generate favorable image for their brands.

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BRAND TYPES

Premium:- Cost more than other product in the category

Economic:- Targeted to high price elasticity market segment.

Manufacturing:- It is directly manufactured by manufacturers who have invested heavily

on building them. For example, Surf, Rin, Lux, Colgate.

Generic brand:- It is consumer products (often supermarket goods) are

distinguished by the absence of a brand name. Generics brands are usually priced

below those products sold by supermarkets under their own brand (frequently

referred to as "store brands" or "own brands"). Generally they imitate these more

expensive brands, competing on price. For example, Rice, wheat, Doormats, paper

napkins.

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TYPES OF BRANDS

PremiumManufactur

ingGeneric Economic

BRAND STRATEGYBranding in essence is effective brand strategy. It's the application of sound research into brand communications, analytical techniques, and the development of an improved strategy for your brand. Strategy is all about brand positioning. It identifies the key elements of product brand and develops a branding action plan to implement it.

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BRAND STRATEGY DECISIONLine extension

brand extension Extending the brand

Line extension

Reaching out to a new category

Brand relaunch

Multibrands

New brand name

Brand Extensions

During the last two decades the firms are increasingly convinced that a company’s success can

be improved by the introduction of new products. A key factor for the new product success is

the used brand strategy. Capitalising on the equity in established brand names has become the

guiding strategy of product planners. For firms of branded goods brand extension strategy have

become very popular. Brand Extension is leveraging the values of the brand to take the brand

into new markets/sectors. Brand extensions lets a marketer take a brand with well-known

quality perceptions and associations and put it in a new category. Not only can marketers

capitalize on brand awareness, they can also leverage of the associations consumers know

about the parent brand. In several product categories more than 90% of new product

introduction are brand extensions. Consumers who favorably evaluate a parent brand are more

willing to try and adopt the brand extension than an unfamiliar brand in the same category.

They trust a known brand name. For these reasons, brand extensions make new product

introduction less expensive.

Brand extensions can also help a firm’s stock prices. An academic research has found that Wall

Street attend to brand extension announcements and that whether they like them or not

depends on how much they like the parent band. Brand extensions can also help consumers

understand the core meaning of the brand name. When Arm and Hammer extends its name

from baking soda to deodorant, kitty litter, shoe inserts, its core "deodorizing" brand concept is

enhanced. Arm and Hammer means deodorizing—no matter what it is on. So, in this sense,

brand extensions truly help to build equity in the brand name itself.

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Advantages of Brand Extension

For most firms, the question is not whether the brand should be extended, but when, where,

and how the brand should be extended. Well-planned and well-implemented extensions offer a

number of advantages to marketers. Brand extension strategy has found favours in the modern

marketing world because of the advantages it has over the other new product launch options.

The important benefits that it promises to deliver are as follows:-

Facilitate New Product Acceptance

The high failure rate of new products is well documented. Marketing analysts estimate that

perhaps only 2 of 10 new products will be successful, or maybe even as few as 1 of 10. As noted

previously, new products can fail for a number of reasons. Robert McMath, who oversees a

collection of over 75,000 once-new consumer products called the New Products Showcase and

Learning Center in Ithaca, New York, identifies nine main reasons for product failure

1. The market was too small (insufficient demand for type of product).

2. The product was a poor match for the company.

3. The product was justified on inadequate or inaccurate marketing research, or the company

ignored research results.

4. The company was too early or too late in researching the market (failure to capitalize on its

marketing window).

5. The product provided insufficient return on investment (poor profit margins and high costs).

6. The product was not new or different (a poor idea that really offered nothing new).

7. The product did not go hand in hand with familiarity.

8. Credibility was not confirmed on delivery.

9. Consumers could not recognize the product.

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Brand extensions can certainly suffer from some of the same shortcomings faced by any new

product. Nevertheless a new product, introduced as a brand extension, may be more likely to

succeed, at least to some degree, because it offers the advantages described in the following

subsections.

Improves Brand Image

One of the advantages of a well-known and well-liked brand is that consumers form

expectations over time concerning its performance. Similarly, with a brand extension,

consumers can make inferences and form expectations as to the likely composition and

performance of a new product based on what they already know about the brand itself and the

extent to which they feel this information is relevant to the new product. These inferences may

improve the strength, favorability, and uniqueness of the extension's brand associations. For

example, when Sony introduced a new personal computer tailored for multimedia applications-

Vaio, consumers may have been more likely to feel comfortable with its anticipated

performance because of their experience with and knowledge of other Sony products than if the

product had been branded by Sony as something completely new.

Reduces Risk Perceived by Customers

One research study examining factors affecting new product acceptance found that the most

important factor for predicting initial trial of a new product was the extent to which a known

family brand was involved. Extensions from well-known corporate brands such as General

Electric, Hewlett-Packard, Motorola, or others may communicate longevity and sustainability.

Although corporate brands may lack specific product associations because of the breadth of

products attached to their name, their established reputation for being able to introduce quality

products and stand behind them may be an important risk-reducer for consumers Thus,

perceptions of corporate credibility—in terms of expertise and trust-worthiness—can be

valuable associations in introducing brand extensions Similarly, although widely extended

supermarket family brands such as Betty Crocker, Green Giant, Del Monte, and Pepperidge Farm

may lack specific product meaning, they may still stand for product quality in the minds of

consumers and, by reducing perceived risk, facilitate the adoption of brand extensions.

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Increase Efficiency of Promotional Expenditures

From a marketing communications perspective, one obvious advantage of introducing a new

product as a brand extension is that the introductory campaign does not have to create

awareness of both the brand and the new product but instead can concentrate on only the new

product itself. In general, it should be easier to add a link from a brand already existing in

memory to a new product than it is to first establish the brand in memory and then also link the

new product to it. As a dramatic illustration of the marketing communication efficiencies of

brand extensions, when General Mills launched its fourth Cheerios extension, Frosted Cheerios,

the brand was able to achieve a 0.44 percent market share in the extremely competitive cereal

category in its very first week of sales with essentially no advertising or promotion. Solely on the

basis of its name and product concept, demand for the sweetened oat cereal was so high that

most supermarkets were forced to limit the number of boxes that could be purchased.

Several research studies document this extension benefit. One study of 98 consumer brands in

11 markets found that successful brand extensions spent less on advertising than did

comparable new-name entries. A comprehensive study by Indiana University's Dan Smith found

similar results, indicating that the average advertising to sales ratio for brand extensions was 10

percent, compared with 19 percent for new brands. His study identified some underlying factors

moderating this extension advantage. The difference in advertising efficiency between brand

extensions and new brands was shown to increase as the fit with other products affiliated with

the parent brand increased, as the new product's relative price compared with that of

competitors increased, and as distribution intensity increased. On the other hand, the difference

in advertising efficiency between brand extensions and new brands was shown to decrease

when the new product was composed primarily of search attributes (i.e., when product quality

could be Judged through visual inspection), as the new product became established in the

market, and as consumers' knowledge of the new product category increased.

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Reduce Cost of Introductory and Follow-Up Marketing Programs

Because of these push and pull considerations in distribution and promotion, it has been

estimated that a firm can save 40 percent to 80 percent on the estimated $30 mil lion to $50

million it can cost to launch a new supermarket product nationally in the United States.

Moreover, other efficiencies can result after the launch. As one such example, when a brand

becomes associated with multiple products, advertising can become more cost-effective for the

family brand as a whole. For example, in 1988, Jaguar introduced its first substantially improved

automobile model in 16 years, adopting new technology to improve reliability although still

retaining the classic Jaguar look. The resulting marketing program, which included a lavish ad

campaign, increased demand for all new Jaguars. Even older Jaguars found their resale market

value enhanced.

Avoid Cost of Developing a New Brand

Developing new brand elements is an art and science. To conduct the necessary consumer

research and employ skilled personnel to design high-quality brand names, logos, symbols,

packages, characters, and slogans can be quite expensive, and there is no assurance of success.

As the number of available and appealing brand names keeps shrinking, legal conflicts are more

likely to result. Despite the fact that it had conducted a trademark search, Cosmair's L'Oreal

division was successfully sued for $2.1 million when a court decided that the name it had chosen

to introduce a new green and purple hair dye, Zazu, infringed on the name of a line of shampoos

sold by a Hinsdale, Illinois, hair-styling salon called ZaZu Designs.

Allow for Packaging and Labeling Efficiencies

Similar or virtually identical packages and labels for extensions can result in lower production

costs and, if coordinated properly, more prominence in the retail store by creating a "billboard"

effect. For example, Stouffer's offers a variety of frozen entrees with identical orange packaging

that increases their visibility when stocked together in the freezer. A similar billboard effect is

evident with other supermarket brands, such as Coca-Cola soft drinks and Campbell soup.

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Permit Consumer Variety-Seeking

By offering consumers a portfolio of brand variants within a product category, consumers who

need a change—because of boredom, satiation, or whatever—can switch to a different product

type if they so desire without having to leave the brand family. Even without such underlying

motivations, by offering a complement of line extensions, customers may be encouraged to use

the brand to a greater extent or in different ways than otherwise might have been the case.

Moreover, to even effectively compete in some categories, it may be necessary to have multiple

items that together form a cohesive product line.

Provide Feedback Benefits to the Parent Brand

Besides facilitating acceptance of new products, brand extensions can also provide positive

feedback to the parent brand in a number of ways, as described in the following subsections.

Clarify Brand Meaning

Extensions can help to clarify the meaning of a brand to consumers and define the kinds of

markets in which it competes. Thus, through brand extensions, Volvo means "safety," Nike

means "winning," Gerber means "baby care," Amul means "healthy," and Chun King means

"Chinese food" to consumers.

Broader brand meaning often is necessary so that firms avoid "marketing myopia" and do not

mistakenly draw narrow boundaries around their brand and either miss market opportunities or

become vulnerable to well-planned competitive strategies. Thus, as Harvard's Ted Levitt pointed

out in a pioneering article, railroads are not just in the "railroad" business but also the

"transportation' business In other words, railroads do not necessarily compete with other

railroads so much as with other forms of transportation (e.g. , cars and planes) Thinking more

broadly about product meaning can easily result in different marketing programs and new

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product opportunities For example, Steelcase's one-time slogan, "A Smarter Way to Work,"

reflected the fact that the company defines its business not as manufacturing desks, chairs, file

cabinets, and credenzas but as "helping to enhance office productivity" For some brands, creat-

ing broader meaning is critical and may be the only way to expand sales In some cases, it is

advantageous to establish a portfolio of related products that completely satisfy consumer

needs in a certain area. For example, the $3 billion oral care market is characterized by a

number of mega-brands (e.g., Colgate and Crest) that compete in multiple segments with

multiple product offerings. Although these different brands were limited to a few specific

products at one time, they have broadened their meaning through brand extensions to

represent "complete oral care." Similarly, many specific-purpose cleaning products have

broadened their meaning to become seen as multipurpose (e.g., Lysol, Comet).

Enhance the Parent Brand Image

According to the customer-based brand equity model, one desirable outcome of a successful

brand extension is that it may enhance the parent brand image by strengthening an existing

brand association, improving the favorability of an existing brand association, adding a new

brand association, or a combination of these.

One common way that a brand extension affects the parent brand image is by helping to clarify

its core brand values and associations. Core brand values are those attributes and benefits that

come to characterize all the products in the brand line and, as a result, are those with which

consumers often have the strongest associations. For example, Nike has expanded from running

shoes to other athletic shoes, athletic clothing, and athletic equipment, strengthening its

associations to "peak performance" and "sports" in the process.

Another type of association that may be improved by successful brand extensions is consumer

perceptions of the credibility of the company behind the extension. For example, Keller and

Aaker showed that a successful corporate brand extension led to improved perceptions of the

expertise, trustworthiness, and likeability of the company. In the late 1990s, several firms chose

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to introduce online versions of their services under a separate brand name (e.g., Bank One

chose to launch its online bank as Wingspan). Besides increasing the difficulty and expense of

launching a new brand, such companies also lost the opportunity to modernize the parent brand

image and improve its technological credentials. In many cases, these ventures failed and their

capabilities were folded back into the parent organization.

Bring New Customer into the Brand Franchise and Increase Market Coverage

Line extensions can benefit the parent brand by expanding market coverage, for example,

by offering a product benefit whose lack may have heretofore prevented consumers from

trying the brand. For example, when Tyienol introduced a capsule form of its

acetaminophen pain reliever, it was able to attract consumers who had difficulty

swallowing tablets and therefore might have otherwise avoided the brand.

By creating "news" and bringing attention to the parent brand, its sales may also increase.

For example, although the market share of regular powdered Tide—which once was at 27

percent—had slipped to 21 percent in the early 1980s, the introduction of Liquid Tide

and Multi-Action Tide (a combined detergent, whitener, and fabric softener) resulted in

market share increases of 2 percent to 4 percent for the flagship Tide parent brand by

1986. Remarkably, through the skillful introduction of extensions, Tide as a family brand

has managed to maintain its market leadership and a market share of roughly 50 percent

from the 1950s to the present.

Permit Subsequent Extensions

One benefit of a successful extension is that it may serve as the basis for subsequent extensions.

For example, Goodyear's successful introduction of its Aquatred tires sub-brand led to the

introduction of Eagle Aquatred for performance vehicles with either wider wheels (e.g., the Ford

Mustang) or a luxury image (e.g., the Cadiltdi Seville).

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Revitalize the Brand

Sometimes brand extensions can be a means to renew interest and liking for the brand.

Increases the Probability of Gaining Distribution and Trial

Because of the potentially increased consumer demand resulting from introducing a new

product as an extension, it may be easier to convince retailers to stock and promote a brand

extension.

Returns:

Over time many brands, from being initially mono-product or mono-activity have evolved into a

diversified structure. For instance, Walt Disney was focused on children animation during the

fifties but now it has branches into highly heterogeneous businesses. These include publishing,

films, television, theme parks and cruises. A study exploring the returns connected with the

brands found that strong brands are able to generate returns to shareholders which are 1.9 per

cent above the industry average. Return comparison between focused and diversified brands

revealed that focused brands like Dell and Levi's manage to earn merely 0.9 per cent higher than

the industry average while diversified brand like GE, Disney etc earn no less than 5 per cent

more than the industry average. These figures clearly demonstrate superior returns generating

process of diversified brands. What are the responsible factors that enhance returns of

diversified brands? Three factors probably drive the superior economics of such brands. First,

leveraged brands are able to divide their support costs over a number of products. Second, the

'convergence' is throwing up new opportunities in many industries. Finally, the rising

importance of relationship benefits for customers. The companies seem to work through loyalty

programmes, better customer understanding and customers.

Accordingly, leveraging brand makes more sense in these conditions.

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DISADVANTAGES OF BRAND EXTENSIONS

Despite these potential advantages, brand extensions have a number of disadvantages

Can Confuse or Frustrate Consumers

Different varieties of line extensions may confuse and perhaps even frustrate consumers as to which

version of the product is the "right one" for them. As a result, they may reject new extensions for tried

and true favorites or all-purpose versions that claim to supersede more specialized product versions.

Moreover, because of the large number of new products and brands continually being introduced, many

retailers do not have enough shelf or display space to stock them all. Consequently, some consumers

may be disappointed when they are unable to find an advertised brand extension if a retailer is not able

to or is unwilling to stock it. If a firm launches extensions that consumers deem inappropriate, they may

question the integrity and competence of the brand.

Can Encounter Retailer Resistance

On average, the number of consumer packaged-goods stock-keeping units (SKUs) grew 16 percent each

year from 1985 to 1992, whereas retail shelf space expanded only 15 percent each year during the same

period. Many brands now come in a multitude of different forms. For example, Campbell has introduced

a number of different lines of up—including Condensed, Home Cookin', Chunky, Healthy Request, Select,

Simply Home, and Ready-to-Serve Classic—and offers more than 100 flavors in all.

As a result, it has become virtually impossible for a grocery store or supermarket to offer all the different

varieties available across all the different brands in any one product category. Moreover, retailers often

feel that many brand extensions are merely "me-too"" products that duplicate existing brands in a

product category and should not stocked even if there were space. Attacking brand proliferation, a year-

long Food Marketing Institute (FMI) study showed that retailers could reduce their SKUs by 5 percent to

25 percent in certain product categories without hurting sales or consumer perceptions of the variety

offered by their stores The FMI "product variety" study commended that retailers systematically identify

duplicated and slow-moving items eliminate them to maximize profitability. The Science of Branding

summarizes one perspective on how to reduce brand proliferation and simplify marketing.

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Can Fail and Hurt Parent Brand Image

The worst possible scenario with an extension is that not only does it fail, but it also harms the parent

brand image somehow in the process. Unfortunately, these negative feedback effects can sometimes

happen.

Consider General Motors's experience with the Cadillac Cimarron This model reduced in the early 1980s,

was a "relative" of models in other GM lines, such as the Pontiac 2000 and Chevrolet Cavalier. The target

market was less-affluent buyers seeking small luxury car who wanted, but could not really afford, a full-

size Cadillac. Nor was the Cadillac Cimarron unsuccessful at generating new sales with this market

'segment, but existing Cadillac owners hated it. They felt it was inconsistent with the large size and

prestige image they had expected from Cadillac. As a result, Cadillac sales dropped significantly in the

mid-1980s. Looking back, one GM executive offered following insights:

The decision was made purely on the basis of shortsighted profit and financial analysis, with no

accounting for its effect on long-run customer loyally or, if you will, equity. A typical financial

analysis would argue that the Cimarron would rarely steal sales from Cadillac's larger cars, so

any sale would be one that we wouldn't have gotten otherwise. The people who were most

concerned with such long-range issues raised serious objections but the bean counters said, "Oh

no, we'll get this many dollars for every model sold." There was no thinking about brand equity.

We paid for the Cimarron down the road. Everyone now realizes that using the model to extend

the name was a horrible mistake.

Even if an extension initially succeeds, by linking the brand to multiple products, the firm

increases the risk that an unexpected problem or even tragedy with one product in the brand

family can tarnish the image of some or all of the remaining products. For example, starting in

1986, the Audi 5000 car suffered from a tidal wave of negative publicity and word of mouth

because it was alleged to have a "sudden acceleration " problem that resulted in an alarming

number of fatal accidents. Even though (here was little concrete evidence to support the claims

(resulting in Audi, in a public relations disaster, attributing the problem to the clumsy way that

Americans drove the car), Audi's U.S. sales declined from 74,000 in 1985 to 21,000 in 1989. As

might be expected, the damage was most severe for sales of the Audi 5000, but the adverse

publicity also spilled over to affect the 4000 model and, to a lesser extent, the Quattro model.

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The Quattro might have been relatively more insulated from negative repercussions because it

was distanced from the 5000 by virtue of its more distinct branding and advertising strategy.

Understanding when unsuccessful brand extensions may damage the parent brand is important. On a

more positive note however, it should be recognized that one reason why an unsuccessful brand

extension may not necessarily damage the parent brand is for the very reason that the extension may

have been unsuccessful in the first place—hardly anyone may have even heard of it. Thus, the silver

lining in the case when a brand extension fails as a result of an inability to secure adequate distribution

or to achieve sufficient brand awareness is that the parent brand is more likely to survive relatively

unscathed. Product failures in which the extension is found to be inadequate in some way on the basis

of performance are more likely to negatively affect parent brand perceptions than these "market"

failures.

Can Succeed but Cannibalize Sales of Parent Brand

Even if sales of a brand extension are high and meet targets, it is possible that this revenue may have

merely resulted from consumers switching to the extension from existing product offerings of the

parent brand—in effect cannibalizing the parent brand by decreasing its sales. Brand extensions are

often designed to establish points of parity with current offerings competing in the parent brand

category, as well as to create additional points of difference in other areas (e.g., low-fat versions of

foods). These types of line extensions may be particularly likely to result in cannibalization. Often,

however, such intrabrand shifts in sales are not necessarily undesirable because they can be thought of

as a form of "preemptive cannibalization." In other words, consumers might have switched to a

competing brand instead of the line extension if it had not been introduced into the category.

For example Diet Coke's point of parity of "good taste" and point of difference of "low calories"

undoubtedly resulted in some of its sales coming from regular Coke drinkers. In fact, although U.S. sales

of Coca-Cola's cola products have held steady since 1980, sales in 1980 came from Coke alone whereas

sales today also receive significant contributions from Diet Coke, Cherry Coke, and uncaffeinated forms

of Coke. Without the introduction of those extensions, however, some of Coke's sales might have gone

to competing Pepsi products or other soft drinks or beverages instead.

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Can Succeed but Diminish Identification with Any One Category

One risk of linking multiple products to a single brand is that the brand may not be strongly identified

with any one product. Thus, brand extensions may obscure the identification of the brand with its

original categories, reducing brand awareness. For example, when Cadbury became linked in the United

Kingdom to mainstream food products such as Smash instant potatoes, marketers of the brand may

have run the risk of weakening its association to fine chocolates. Pepperidge Farm is another brand that

has been accused by marketing critics of having been extended so much (e.g. into soups) that the brand

has lost its original meaning as "delicious, high-quality cookies."

The vociferous business consultants Al Ries and Jack Trout, who in 1981 introduced the notion of the

“line extension trap”, have popularized this potential drawback. They provide a number of examples of

brands that, at the time, they believed had overextended.

One such example was Scott Paper, which Ries and Trout believe became overextended when its name

was expanded to encompass ScotTowels paper towels, ScotTissue bath tissue, Scotties facial tissues,

Scotkins, and Baby Scot diapers. Interestingly, in the mid-1990s, Scott decided to attempt to unify its

product line by renaming ScotTowels as Scott Towels and ScotTissue as Scott Tissue, adding a common

look and logo (although some distinct colors) on both packages as well as their Scott Napkins. In perhaps

a risky move, Scott also decided to phase out local brand names in 80 foreign countries where Scott

garnered almost half its sales including Andrex, its top-selling British bath tissue. Scott's hope was that

the advantages of brand consolidation and global branding would offset the disadvantages of losing

local brand equity.

Some notable—and fascinating—counterexamples to these dilution effects exist, however, in terms of

firms that have branded a heterogeneous set of products and still achieved a reasonable level of

perceived quality in the minds of consumers for each product. For example, Yamaha has developed a

strong reputation selling an extremely diverse brand line that includes motorcycles, guitars, and pianos.

Mitsubishi uses its name to brand a bank, cars, and aircraft. Canon has successfully marketed cameras,

photocopiers, and office equipment. In all these cases, it seems as if the brand has been able to secure a

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dominant association to quality in the minds of consumers without strong product identification that

might otherwise limit it.

Can Succeed but Hurt the Image of the Parent Brand

If the brand extension has attribute or benefit associations that are seen as inconsistent or perhaps even

as conflicting with the corresponding associations for the parent brand, consumers may change their

perceptions of the parent brand as a result. For example, Farquhar notes that when Domino's Pizza

entered into a licensing agreement to sell fruit-flavored bubble gum a number of years ago, it ran the

risk of creating a "chewiness" association that could negatively affect its flagship pizza products.

As another example described Miller Brewing's difficulty in creating a "hearty" association to its flagship

Miller High Life beer brand in, part because of its clear bottle and other factors such as its advertising

heritage as the "champagne of bottled beer." It has often been argued that the early success of the

Miller Lite light beer extension-market share soared from 9.5 percent in 1978 to 19 percent in 1986—

only exacerbated the tendency of consumers to think of Miller High Life as "watery" tasting and not a

full-bodied beer. These unfavorable perceptions were thought to have helped to contribute to the sales

decline of Miller High Life, whose market share slid from 21 percent to 12 percent during that same

eight-year period.

Can Dilute Brand Meaning

The potential drawbacks from a lack of identification with any one category and a weakened image may

be especially evident with high quality or prestige brands.

Can Cause the Company to Forgo the Chance to Develop a New Brand

One easily overlooked disadvantage to brand extensions is that by introducing a new product as a brand

extension, the company forgoes the chance to create a new brand with its own unique image and

equity. For example, consider the advantages to Disney of having introduced Touchstone films, which

attracted an audience interested in movies with more adult themes and situations than Disney's

traditional family-oriented releases; to Levies of having introduced Dockers pants, which attracted a cus-

tomer segment interested in casual pants; to General Motors of having introduced Saturn, which

attracted consumers weary of "the same old cars sold the same old way"; and to Black & Decker from

having introduced DeWalt power tools, which attracted a higher-end, more skilled market segment.

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Each of these brands created its own associations and image and tapped into markets completely

different from those that currently existed for other brands sold by the company. Thus, introducing a

new product as a brand extension can have significant and potentially hidden costs in terms of lost

opportunities of creating a new brand franchise.

Moreover, there may be a loss of flexibility in the brand positioning for the extension given that it has to

live up to the parent brand promise and image. The positioning of a new brand could be introduced and

updated in the most competitive advantageous way possible.

Types of Brand Extensions

Brand extension essentially involves leveraging an existing brand to promote a product into a different

category. The product category definition must be customer-perception based. If the extended product

is perceived to be part of the existing brand category, the extension classification would change

accordingly. The brand must venture into an unrelated category from a customer's behaviour point of

view in order to qualify as brand extension. Brand extension can come in many forms. Some of them are

as follows.

Product Form Extension:

A product launched in a different form usually means line extension rather than brand extension. But if

different product form constitutes entirely a different product category from customer behaviour

perspective, it would be called brand extension. For instance, liquid milk and dried milk may not be

perceived as same product category. Similarly, the chocolate bars and chocolate powder belong to

different categories.

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Loreal Loreal for Mens

(Much more brand extention)

Companion Product:

Brand extensions in the form of companion products are perhaps the most common. The idea perhaps is

to capitalise on product complimentarity. The consumer may view both products jointly and hence,

provide scope for launching brand extension.

Gillette Razors Gillette Shaving Foam

Gillette After Shave

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Customer Franchise

Marketer may extend a product range in order to meet the need of a specific customer group. For

instance, a company may launch a variety of products meant for e.g., nursery going school children. The

focus here is not customer base but their diverse needs.

Johnson & Johnson

Baby Shampoo

Johnson & Johnson

Baby Talc

Johnson & Johnson

Baby Oil

Company Expertise

Brand extensions often come in the forms of different product category introductions using a common

name but emanating from a common expertise pool. This strategy is particularly true in Japanese

companies.

Honda Cars Honda Gensets Honda Scooters

Brand Distinction

Many brands achieve distinction in the form of a unique attribute, benefit or feature which gets uniquely

associated with the brand. In these situations, a company can work backwards to launch different

products which essentially cash in on this distinction. For instance, Parachute may have expertise of

'coconut nourishment' in customers mind over time. This would give its company Marico the

opportunity to launch a variety of products exploiting this distinction.

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Parachute Hair

Oil

Parachute

Shampoo

Parachute Cream

Brand Image or Prestige

A brand extension may involve a foray in to unrelated product categories based on a brand's exclusive

image or prestige. Brand exclusivity or prestige bestows great extension opportunities. This is

particularly true of designers and artist brands

Cartier

Jewellery

Cartier

Watches

Cartier

Purses

Distinctive Taste, Ingredient or Component:

Brand may develop equity based on any and/or combination or taste, ingredient or component. When

such a close association develops, a marketer can make entries into unrelated product categories

capitalising on these properties for instance, Nescafe enjoys proprietary association of distinctive taste.

Accordingly, the brand could be leveraged in other product fields:

Nescafe

Chocolate

Nescafe Biscuits Nescafe Milk

Supplement

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Vertical extensions

Some brand extensions are vertical extensions of what they currently offer. A brand can use their

“ingredient/component” heritage to launch products in a more (or sometimes less) finished form.

Vim Bar Vim Liquid Vim Powder

The Good, Bad and Ugly Extensions:

The primary lure of using a well established brand name to promote a product belonging to a different

category is to exploit/leverage what the brand name stands for in the mind of the customer. A brand is

nothing but a network of associations, which drive consumer buying. The logic of brand extension is to

transfer these associations in the extension context so that desired brand equity outcomes result.

However, brand extensions do not always create desired outcomes. Five possibilities exist: the good,

more good, the bad, the ugly and the more ugly.

The Good Extensions

When the parent brand contributes positively to the extended product, it is called good extension. The

parent brand can help the extension by providing brand associations, quality, associations and

recognitions and awareness to the extended brand. Making a foray into the toilet soap market is quite

difficult because of overcrowding, consumer's low involvement and product similarity. Dettol's

extension into toilet soaps illustrates how extension acquired Dettol's associations and became a

successful soap. The parent brand may also help extension by providing quality rub off. Brands can

bestow quality perception to extension. The Tata name in India stands for some level of quality, if not

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exceptionally high quality. By extending the Tata name to its small car, the car successfully got quality

rub off. Brand name awareness and recognition plays a very crucial role in marketing under low

involvement conditions. A brand extension in such situation builds awareness and recognition much

efficiently for the extended product. For instance, Nirma gained in terms of these dimensions when it

extended its name to toilet soaps.

More Good Extension

Sometimes it is not just that the parent brand helps the extension, rather the extension also aids the

parent brand by way of positive feedback. That is, the extension may enhance and strengthen the

parent brand by increasing the brand visibility and supporting the core associations. For instance, the,

core associations of Dettol brand are strengthened by launching products which are antiseptic oriented

like plaster, shaving cream and toilet soap.

The Bad:

It is not that the use of a brand or a product belonging to a different category is always beneficiary,

Sometimes the name does not help the extension. This may happen on account of two reasons: first,

when the name does not add value and second, the name passes on negative associations to the

extension or instance, the Pierre Cardin name does not add value to its range of writing instruments.

Ponds name also failed to add any value to it toothpaste extension. Similarly was the fate with Nirma's

foray into toothpastes. The value addition did not take place because these names do not have any

expertise and credibility in the extension context. Also, extension may stimulate negative attribute

associations. This happened when Levis launched their tailored classic line. Tailored classics and Levis

strong association with casual clothing conflicted.

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The Ugly

Sometimes the extension succeeds but its success comes at a cost. The extension damages the brand

name by creating undesirable attribute associations, hurting quality perception, and altering its existing

associations. All these indicate negative feedback to the parent brand by an extension which succeeds in

the marketplace. An extension would create its own associations. But some of these associations may

damage the brand. For instance, if a premium brand like Rolex enters into the mid price clothing line, it

creates undesirable associations and hurts the parent brand. However, the reverse transfer of

associations are less likely if the parent brand associations are strong and there is distinct difference

between parent and the extension. Brand extensions also, sometimes may weaken the associations

(making associations fuzzy and blurred). This problem can particularly arise when the brand's core

associations are class related (e.g., Bisleri's water, or Amul's milk products). So when the brand is

extended beyond its product class, its core brand association may get weakened. Imagine Amul

launching aerated soft drinks. Further, brand extension may hurt the brand by affecting its quality

image. For instance,

Louis Phillip enjoys a quality image in India, what would happen if it allows its name to be used by

inexpensive, low quality toiletries for men.

Brand extension is a common route followed by the marketers. But commonness does not mean

that extension is also a quick short cut to launch new products and services. The above discussion clearly

spells out the potential dangers associated with unplanned extensions. By simply putting a successful

brand name to any product one cannot be assured of success. Instead, the brand extensions can

backfire. This necessitates that the manager while planning for brand extensions, must systematically

analyse the possible opportunities.

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Marketing of Loreal Brand

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Media Marketing

Advertising is a management function. While advertising is the event, advertising management

is the whole process – a function of marketing starting from market research continuing through

advertising leading to actual sales or achievement of objective. But advertising management

does not stop here. It goes further in regard to evaluation of the whole cost benefits that were

involved in the whole exercise.

Today’s advertising plays an important role in marketing field. Without advertisements it is difficult for any company to sale its products. “No business can survive without advertising”. Advertisements are required in every sector. It helps to increase the products demand and enhance company’s image in market.

Advertisement deals with many factors and sends the product information to consumers

through various medias. There are latest developments in advertising medias. In today’s fast

forward world they are playing a critical role in overall advertising process. It mostly helps the

customer to choose the specific product in the market.

The project deals with the total advertisement information on Fast Moving Consumer Goods

(FMCG) such as buying motives of consumers, how advertising helps to companies in

promoting their products; different traditional as well as latest media for advertising and their

advantages and disadvantages; for any advertisement to be successful the agency behind it

has to be that efficient to understand the consumers needs. Like how client choose specific

agencies. How agencies gain and lose their clients.

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MEANING OF “MARKET”: -

The widened horizon of the market world over has given a different dimension to the field of

marketing. In view of the, revolution in the field of transport and communication, international

markets have come into existence and marketing has become a highly specialized job. Before

going into technicalities of marketing, let us try to understand the concept of market. In an

ordinary sense, a market refers to a particular place where buyers and sellers meet in order to

conduct buying and selling activities. In this sense, market refers to a particular place or locality

where business transactions are conducted.

MEANING OF MARKETING: -

Marketing has been defined by the “American Marketing Association” as, “the

performance of the business activities that direct the flow of goods and services from producer to

consumer or user.”

Philip Kotler defines marketing as, “a human activity directed at satisfying needs and wants

through exchange process.”

From the above definitions it is clear that marketing is not only concerned with buying and

selling but also with all other activities resulting into flow of goods and services from the centres

of production to centres of consumption. In marketing, an attempt is also made to find out the

potential outlet and buyers. It is an attempt to create new demand for the goods. Thus the term

marketing has wider scope.

Philip Kotler’s definition point out that marketing is a means for the satisfaction of human

wants. The purpose of marketing is to supply goods according to the requirements of the

consumers. Marketing aims at maximizing profits to the sellers and maximizing satisfaction to

the consumers.

The modern concept of marketing is quite different from the traditional one. Traditionally,

marketing consists of those activities, which were responsible for the movement of goods form

producer to consumers. The aim of marketing was to create place, time and possession utilities to

goods. The modern marketing concept is not concerned with the physical process of distribution.

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In the modern sense, marketing function is concerned with the creation of a consumer. Thus

marketing is the base of all business activities.

Modern marketing is concerned with –

1) To identify the needs of consumers.

2) To organize the business in such a manner as to meet these needs effectively with

benefits of consumers and producers.

To conclude, modern marketing is essentially “consumer oriented” or “service oriented” and

not merely “profit oriented”.

Features of marketing

1. Change in ownership and possession: Marketing includes all activities concerned with

affecting change in ownership and possession of goods and services.

2. Creation of utilities: Marketing creates time, place and possession utilities.

3. Satisfaction of human wants: Marketing is a process through which human wants are

satisfied through the exchange of goods and services.

4. Connecting center of production and consumption: Marketing is the sum total of

activities that take place in getting goods and services into the hands of ultimate consumer.

5. Consumer satisfaction: Satisfaction and welfare of consumer.

6. Profit orientation: Marketing should also give reasonable profit to the seller. Marketing is

not a social service but an economy activity for the satisfaction to consumers and

reasonable return to seller.

7. Sales promotion: Marketing aims at determining the needs of consumers. It also includes

the use of sales promotion measures in order to encourage consumer to buy more. It is

basically sales promotion tool in the armory of a businessman.

8. Marketing mix: Marketing is the sum total of four P’s such as Product, Price, Promotion,

and Place. Thus, marketing involves producing the right product changing the right price,

placing the product in the right way, targeting the right market place. Marketing is

essentially consumer-oriented in character. It is for promoting sales.

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Importance of marketing:

1. Marketing helps in effecting supply at the right place and right time.

2. Marketing stabilizes the price.

3. It informs consumer about the arrival of new product and their uses.

4. It improves the standard of living of consumers.

5. Marketing establishes a channel of communication between producer and consumer, thus

speeds up the exchange of goods and services.

6. Marketing facilitates the free flow of goods and services and prevents accumulation of

unsold stock.

7. Marketing helps in increasing the volumes of production and hence the manufacturers

can enjoy the advantages of large-scale economics.

8. Marketing provides employment opportunities, thus enhances the general welfare of the

society.

9. Marketing enables the producers to concentrate on production of goods leaving the

distribution to the distributive class. Due to this sort of specialization, producer can

concentrate on production and also improve the quality of production.

Knowledge of Buying Motives: -

Increased turnover of the organization depends upon the successful handling of customers. If the company wants to sell its product in the market it must know why people buy different articles. All customers buy in order to satisfy their wants and desires. However this desire is not exactly same with all customers. The buying motives are emotional in the character. Buying motive is the base of the buying behaviour of a customer. They include strong feeling, urge, desire, drive or stimulus that makes a person to take the decision to buy. Buying motive encourages the people to buy specific goods.

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According to Prof. Duncan “buying motives are those influences or considerations which provide the impulse to buy, induce action or determine choice in the purpose of goods or services.”

In simple words, buying motives are the thoughts, emotions and instincts, which arouse in the mind of the customer a desire to buy. Buying motives are the aims or objectives due to which a customer decides to buy a specific article or product.

The following are some important buying motives: -

1. Fear: One of the important motives is fear. It may be fear of death, fear of loss, fear of the

future, fear of property etc. tactful sales talk bringing the appropriate fear into prominence

would motivate the prospect into immediate action. This motive sells all types of insurance,

vitamin pills, burglar alarms, etc.

Relationship between fear levels and massage acceptance

Facilitating effects

Acceptance of message

Recommendation Level of fear High

Resultant

nonmonotonic

Inhabiting effects curve

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Before deciding to use a fear appeal based massage strategy, the advertiser should consider

how fear operates, what level to use and how different target audiences may respond. One

theory suggests that the relationship between the level of fear in the massage and

acceptance of persuasion is curvilinear, as shown in the diagram. This means that massage

acceptance increases as the amount of fear used rise – to a point. Beyond that point

acceptance decreases as the level of fear rises.

This relationship between fear and persuasion can be explained by the fact that fears

appeals have both facilitating and inhabiting effects. A low level fear can have facilitating

effects; it attracts attention and interests in the massage and may motivate the receiver to

act to resolve the threat. Thus increasing a level of fear in a massage from low to moderate

can result in increased persuasion. High levels of fear however, can produce inhabiting

effects; the receiver may economically block the massage by turning it out, perceiving it

selectively or denying its arguments outright. The above diagram illustrates how these two

countereffects operate to produce the curvilinear relationship between fear and persuasion.

2. Profit/ gain: Every person purchases a product because he gains out of it. He weighs the

merit of the product against its price to decide whether to buy it or not. If the advertiser

has proper product knowledge and knowledge of selling points he can easily prove to the

prospect that his product is more beneficial than the product of competitors. Moreover by

offering some discount and concessions or by explaining about gift schemes he can easily

induce the prospects to purchase the product.

3. Vanity: It is excessive pride. People possessing this buying motive have a superiority

complex. Therefore through advertising companies can increase their sales by explaining

this motive properly e.g. a customer can be easily persuaded to purchase a particular

product by watching ads that explains to him that he can improve his social status by

purchasing such a useful item. Then he may be convinced to purchase it even if he does

not really require it.

4. Fashion: Fashion is based on crowd psychology. Fashion can be described as the desire

to imitate what others are doing. It is closely linked up with pride or desire for

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importance. A young man purchases the latest style of sports clothes or the businessman

installs a well-known cooling system in his office, each one is motivated by the desire to

show superiority and be in fashion.

5. Sex or Romances: Sex is very important in case of sale of articles such as fancy clothes,

cosmetics, etc. This is mainly because of attraction of opposite sex.

6. Love and Affection: This is an unselfish motive. Many men can be motivated into

immediate action by an appeal to their sense of duty or love for their family or their

desire to be of service to humanity, e.g. a father purchases toys for his daughter of out

love.

7. Physical Well-being or Health: Everyone likes to be fit and healthy. Products like

tonics, vitamin pills etc. can be sold by an advertisement by exploiting this buying

motive. The reason for success of health centers today is due to possession of these

buying motives among prospects.

8. Comfort and Convenience: Many products are purchased because people want to feel

comfortable. Therefore advertiser should properly understand this motive and exploit it to

increase sales e.g. he can easily convince a working lady to purchase a refrigerator by

explaining that she can cook in the morning and store it in a fridge when she is away for

work. She can just warm up the food after she comes back from work. This will make her

job very easy. Consumer goods like Pillsbury Atta, Knor soups, Maggy can be easily sold

by exploiting this buying motive.

9. Curiosity: Psychologists describe ‘Curiosity’ as a desire for new experience or to know

the latest things in the market. Products like books, papers, magazines are sold on a large

scale due to this buying motive. Moreover travel agencies make profits due to curiosity of

people to know about new places.

10. Habit: People buy certain products out of certain habits e.g. liquor, cigarettes, etc.

Habits can also be created by salesmanship and advertising e.g. sales of pan masalas has

increased due to heavy amounts of advertising.

11. Jealousy: Jealousy is a desire to secure an edge over others. A person may purchase a

colour TV set just to show off to neighbors even if he does not really need the product or

a woman may purchase a diamond set so that she can show off to her friends in parties

even if she cannot afford to purchase it.

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12. Patronage: It can be brand loyalty. Many people have faith in certain brands therefore

they purchase the products of only that brand. Therefore an advertiser should focus on to

maintain brand loyalty.

13. Hobbies: People cultivate hobbies to spend their leisure time e.g., collection of coins,

stamps, photography, playing games, etc. An advertiser can increase his sales by

understanding this buying motive of his prospects.

The study of buying motives is important and essential for every advertiser. It gives the following advantages.

An advertiser understands the mind of the customer clearly and precisely.

An advertiser can focus only those features of a product that satisfy the buying motives of

the customer.

An advertiser can anticipate the possible objections from the customers.

An advertiser can give proper guidance to the customer in his shopping activity.

An advertiser can remove possible resistance of the buyer.

An advertiser can increase the sale of goods.

FAST MOVING CONSUMER GOODS (FMCG): -

According to, “Food Safety Promotion Brand” fast moving consumer goods means, “This is usually an everyday low priced and low risk product that requires very little thought when purchasing”.

Basically in our day-to-day life we need different types of products but FMCG are those products, which we get at very lower price and which are changing time-to-time. Rich as well as poor people consume FMCG. FMCG helps in increasing our national income.

Fast Moving Consumer Goods includes variety of Toilet soaps, detergents, toothpastes, washing products and much more.

ADVERTISING:

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Meaning of Advertising and Publicity:

The powerful weapon in the armoury of business community today is advertising and publicity. It is a part and parcel of every business today and as no business can survive and grow without advertising and publicity. As a matter of fact today advertising and publicity is required in every walk of life. Salesmanship alone will bring limited success in selling unless it is supported by advertising and publicity. Both these activities are supplementary. “Advertising is impersonal salesmanship”. The approach of salesmanship is personal and direct. On the contrary, the approach of advertising is indirect and it appeals to masses. Advertising creates proper background for salesmanship. It brings customers to shops by creating a desire to purchase. “Advertising is called as salesmanship in print”.

In the modern marketing process there is a tendency to use both advertising and publicity interchangeably. Both these terms are treated as terms with the same meaning and one is used for another.

The American Marketing Association defines the term advertising as “any paid form of non personal presentation and promotion of goods, services or ideas by an identified sponsor.”

In simple words, publicity means spreading of information relating to a particular article. The main object of publicity is to influence the public opinion or to bring something to the notice of the public at large. The term “publicity” is wider than the term “advertising”. Advertisement is regarded as a part of publicity. It is also a means of information to the public and aims at publicizing the product. However, it is presented in the form of a specific appeal and is usually presented in an attractive and decorative fashion. It is not only a source of public information but also a tool of sales promotion. Advertisement is a specialized technique of popularizing the product or service. That is why it is described as salesmanship in print or in writing. However, both salesmanship and publicity perform the same function. They make non-personal presentation of goods and services. Thus, in practice these words are often used as synonymous. It must, however be noted that all advertising is publicity but all publicity is not advertising. Advertising is useful for giving publicity to products, firms and manufacturers. Modern advertising is based on human psychology.

Features of Advertising:

1) Process of communication: Advertising is a means of reaching to the masses and such as it

is a very powerful medium of mass communication. Advertisement makes possible publicity

on a bumper scale. It appeals to a large number of people at one and the same time. It

influences the choices and buying decisions of the potential buyers at large. It makes a large

number of people curious about the advertised products at one and the same time. It is

basically a non-personal communication as it is addressed to masses. It is mass oriented and

mass based technique of approaching people.

2) Passing of information: Advertisement informs people about the availability and benefits

they would get if they purchase advertised products. The information is given in a crystal

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clear manner to enable the buyer to obtain the exact details of the product. The information

given should be completed, clear and thorough. The advertising massage should be conveyed

clearly. It enlightens buyer about the utility of the product and its uses. Thus advertising

passes on the correct information and educates consumers. It not only removes doubts, false

notions and prejudices but also facilitates better selection on the part of consumers. People

come to know new products, its features, and multiple uses to which it can be put due to

advertisement.

3) Changing attitude: Primarily advertising aims at changing or influencing buying attitude of

the people. It multiplies wants and opens up new avenues. Due to constant advertisements

buying behaviour of the consumers undergoes a radical change. Instead of consumers buying

A product they are made to buy B product. Thus due to advertising and publicity attitude of

the people and their buying behaviour undergoes a change.

4) Result orientation: The main aim of the advertisement is not only to communicate

effectively and pass on information efficiently. It aims at including action on the part of the

people. It is a result-oriented tool in the armoury of the businessman. It includes people to

buy the goods whether they want or not. It is so persuasive in nature that prospective

consumer is forced to take action in the form of placing of an order.

5) Performing economic function: The technique of advertisement and publicity not only

performs consumption and production function but also economic one. Influencing

production, distribution, employment, price, demand and supply performs economic

function.

Thus today advertisement become a pert and parcel of our life. With the invention of satellite and television advertising we are getting information about hundreds of new products and varieties in home only. Tele shopping and Asian sky shopping not only advertises new products but also deliver them at doorsteps. Thus entire concept of advertising is now undergoing a radical change.

Importance of Advertising:

Advertising plays an important role in modern competitive consumer oriented marketing. It is a must for facing market competition and for effective marketing of goods. Advertising is rightly called grand panacea of modern age. It is the backbone of modern business, which clusters around it. The following factors suggest the importance of advertising.

1) It creates new market:

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Advertising informs to the people about new goods or new models. It educates people in the utility of the products. Whenever any new product is found out, it is widely advertised pointing out the benefits and the utility of the same. Naturally, people who are not aware of the product come to know about it and start buying it. Thus advertising multiplies wants and opens up new markets. Advertising actually creates demand for products much before they are placed in the market. Modern advertising starts before bringing the product in the market. This creates new demand and new markets for the products.

2) It encourages production:

Advertising not only creates demand for the new products but also creates constant demand for the product and maintains the market. Thus, the market for the product is widened due to advertising and publicity. This stimulated production and manufacturers are encouraged to improve the quality of the products. Advertising enables the manufacturer to introduce new products to the consumers. It encourages to consumers to purchase newly manufactured products.

3) It reduces price of goods:

Advertising widens market for goods, which induce producers’, undertake large-scale production. Large-scale production is always cheaper as the producer enjoys economies of scale. Thus the cost of production per unit is reduced which again leads to lowering of the prices of goods. Unfortunately this benefit is generally not given to consumers. On the other hand, the expenditure on the advertising is also collected from the consumers.

4) It reduces cost of distribution:

Advertising reduces the cost of distribution as it does away with the services of a large number of salesmen employed for popularizing the product. Advertising makes possible mass communication. This reduces the need of maintaining large number of salesmen for sales promotion.

5) It facilitates better selection of articles:

Through advertisement, the consumer comes to know varieties in a particular line and the specialities of each variety. It enlightens consumers about the utility of the product and its uses. The consumer can compare the utility of various articles. Thus advertising educates consumers and facilitates better selection of articles. Advertising is useful for removing doubts, false notions or impressions and prejudices of customers.

6) It provides employment to number of people:

Advertising agencies and publicity organizations provide employment to number of people. Advertisement is a specialized job and requires services of artists, painters, cameramen, designers, writers, pressman, commercial artists and so on. The newspapers also count their living on the advertisements. Thus directly or indirectly advertising provides employment to millions of people.

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7) It improves quality of products:

Advertisement places before producers’ facts about the availability of different substitutes. This provides an opportunity to producers to compare the merits and demerits of different substitutes. The manufacturers can buy better substitutes and improve the quality of their products. Thus, advertising contributes to improvement in the quality of product.

8) It promotes goodwill for the organization:

Advertisement helps the organization to build up goodwill for itself. Advertisement not only speaks about the product but also about the company i.e., it mentions that these goods are produced by such and such company. Thus, advertisement crates customers and promotes goodwill for the organization.

9) It brings success in competition:

Competition is one feature of present marketing system. The competition is more intense in the field of marketing of consumer goods. However, advertisement overcomes the present and potential competition by skillfully underlining the comparative superiority of the article under consideration.

10) It is a medium of mass communication:

Advertising is regarded as a very powerful medium of mass communication. Advertisement makes possible publicity on a wide font. For example, an advertisement given in the “Times of India” appeals to lakhs of readers. Thus, advertisements appeals to large number of people at one time and makes them curious about the advertised products. Hence, it is rightly regarded as a powerful means of mass communication.

11) It has an educative value:

An advertisement possesses educative value. It educates the public in the correct use of the product they buy. The companies always advertise the right method of using the product. We often come across advertisements regarding the methods of using a medicine, the methods of preparing delicious and tasty dishes and so on. The advertisement regarding blades tells us that it should not be wiped out while the advertisement of protinex informs us that it should not be added in the boiled milk. The pictures, figures, tables, poems used in the advertisement also posses educative element and provide information to the people.

12) It promotes standard of living:

Advertisement raises the standard of living. It brings to the notice of the public new products and new models. If the information given in the advertisement is correct, our wants are more effectively satisfied. Advertisement informs about better methods of living and maximizes our satisfaction by making us know a number of new products, which are being placed in the market.

13) It performs economic functions:

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Advertising performs economic function as well. It influences production, distribution, price, consumption and employment. Advertisement creates new demand for products. The increased demand naturally results into increased production of goods. It compels manufacturers to establish new plants and introduce technological improvements. The advertisement also brings various products to the notice of the middleman and other dealers, which accelerates the process of distribution. Similarly by reducing prices and improving quality of the product it facilitates increased consumption. Further, by maintaining demand for the product, it brings price stability.

MEDIA OF ADVERTISING:

We come across a number of ways and means of attracting public attention to the product. The forms of attracting public attention to products are called media of advertising. Media is nothing but the means employed in order to bring advertisement to the public notice. It is the channel through which an advertising message is conveyed to the people at large. There are different media for advertising and any suitable media should be selected. The media to be selected generally depends upon the type of product, the type of buyers to be approached, cost of advertising, users of the products, selling policies of the organization and sales territories.

The following are the important media of advertising: -

1. Press advertising

2. Outdoor advertising

3. Radio advertising

4. Television advertising

5. Film advertising

6. Direct mail advertising

7. Internet advertising

1. Press advertising:

Press advertising is the most popular medium of advertising in the modern competitive marketing. Press advertising means publicity given through newspapers, magazines, journals and other periodicals. It is no exaggeration to say that in the absence of press, the art of advertising would not have acquired its present strength and dimensions. It has been estimated that in India more than 5000 newspapers printed in all the major languages spoken throughout the length and breadth of the country. There are national newspapers, regional newspapers and local papers processing respective value for various advertising appeals. Similarly we come across different weeklies, bi-weeklies, monthlies, quarterlies and annuals. There is also a great deal of specialization among various journals and weeklies e.g., technical journals, journals meant mainly for children and females. Wide varieties of newspapers, journals, magazines are available for advertising and the advertiser can select a suitable newspaper or journal to attract the attention of the public.

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In the newspapers advertisements of different sizes can be given. Repetition of the same advertisement is also possible. Some newspapers also publish colour advertisements. Pictures, slogans, charts, etc. can be added in the newspaper advertising. Many newspapers bring out special multi-colored supplements. Wide publicity can be given to the products through such newspaper advertising. This media of advertising has some merits and demerits. They are as stated below:

Advantages / Merits of Press advertising:

I. It facilitates mass appeals. The number of people that can be appealed through press

advertising is very large. Large numbers of national and local newspapers are regularly

published in India. Naturally publicity in different languages and in all parts of the country is

possible through press advertising.

II. Since, its coverage can be estimated there is minimum of wastage.

III. It makes possible variety in advertising appeals as the space for advertising can be adjusted

as per the size of the advertisement.

IV. Its effectiveness can be quickly tested.

V. It has wide coverage. The newspapers and magazines are not only read by purchasers but are

passed on to others and thus, read by a large number of people.

VI. Advertisement in bold and beautiful type at a prominent place quickly draws the attention

and promotes sales. Colour advertisements in the newspapers can be given. Such

advertisements are very attractive and they attract the attention of thousand of readers.

VII. It facilitates desired frequency in advertising. Advertisements in the newspapers can be

repeated as per the desire of the advertiser. This technique of repetition of the same

advertisements gives desired effects.

VIII. It makes possible artistic production of advertisement.

IX. An advertisement in a popular newspaper earns confidence of the readers and this raises the

market demand for products.

X. Newspaper advertising is convenient for all types of products and for all categories of

readers. Extensive advertising in possible due to wide coverage in the circulation of

newspapers.

Disadvantages / Demerits of Press advertising:

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I. Press advertising is short lived and is informal in appeal. Readers give limited attention to

press advertisements and even forget after reading the same due to other activities.

II. It is beneficial only if the bulk of the people are literate and the product offered for sale has a

wide market.

III. It fails to attract the attention of busy and indifferent readers, as they do not give much

attention to the advertisements.

IV. Since, circulation or readership of newspapers cannot be exactly estimated it leads to wastage

in advertising.

V. Changes cannot be introduced quickly in the case of advertisements in newspapers,

monthlies and quarterlies. As a result of this the advertisement becomes stale by the time it

reaches readers.

VI. Newspapers advertisements are not very attractive as the paper used is inferior in quality and

most of the advertisements are in black and white. Thus attractive and impressive advertising

is not possible through press.

VII. Press advertising is expensive as the advertising charges are fast increasing. Small

manufacturers find it difficult to give large advertisements in leading newspapers due to high

advertising charges.

VIII. Newspaper advertising all alone will not be effective. It needs to the supported by TV or

Radio advertising for desired effect.

IX. Press advertising is useful mainly for advertising consumer goods having a wide market.

2. Outdoor advertising:

Press advertising (described above) is basically indoor advertising as papers and magazines are generally read indoors. Outdoor advertising is opposite of this advertising. Outdoor advertising means making advertising outside i.e. on roads, garden, bridges, railway stations and so on. Outdoor advertisements even are seen at street corners, railway stations, bus stands or on moving vehicles. The media for outdoor advertising are posters, painted displays, electric light signs, car cards, neon signs, bus cards, traveling displays, sandwich board, sandwich men, advertising in the air, use of balloons or kites and sky writing. The outdoor advertising is more effective and occupies key position in the present distributive system. Here, the main intention is to exhibit the poster etc. at street corners or in the business locality to attract the attention of people on the road. On posters etc. a short description of the product or the trademark is given. The posters are short but the heading or slogan is forceful. People happen to see the advertisement again and again wherein lies the success of the outdoor advertising. Moreover, outdoor advertising constantly remains at the fixed place unless it is removed, replaced or turn out. It appeals to masses and gives prompt

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response leading to sales promotion. Outdoor advertising is also called as “Mural Advertising.”

Forms of outdoor advertising:

a) Posters:

Poster is one of the most popular forms of outdoor advertising. Poster is a sheet of paper, cloth or cardboard containing the massage regarding the product. Posters are normally exhibited on street corners, railway stations, bus stops, tops of building, market places and other crowded points and places. Posters make very effective and timely appeal to the viewers and onlookers. Walls, fences, chimneys, bridges and hills are also used for the display of posters. The people when they are moving or when they are passing the vehicles sees posters. Selection of proper site and attractive colour combinations makes posters popular, impressive and effective. The posters succeed in the sales promotion if its location is correct. Similarly posters should be of a proper size. It should be neither too small nor too large. Its slogan must be brief, attractive, eye catchy and should convey the massage at a glance. If possible posters should mention important features of the product along with the illustrations of the product. Proper colour combination is also necessary for making the poster attractive.

b) Neon signs:

Neon sign is an electronic device used for advertising the product. Neon signs are glass tubes or signs with electric tube made in the form of letters. Such neon signs are fixed at crowded places or road junctions or at places where people have to wait for one reason or the other. Such neon signs may be either still or of flashing type. Illumination makes them more attractive and agreeable to consumers. This media is used extensively in European countries and Japan. Different colors are used in neon signs for attracting the attention of people. This advertising is costly due to high rent of place used for fixing the neon sign. Regular maintenance is also necessary. Neon signs are lighted at night and late in the evening. In order to have eye catchy effect, different colour combinations are used.

c) Car Cards and Traveling Displays:

Here, cars, buses, trains, delivery vans, etc. are used for the advertising the products. Advertisements are written on the vehicles or small posters are prepared on which advertising massage is written. Such posters are then fixed inside the buses and trains or advertising massage is written on vehicle itself. This type of advertising is very useful in metropolitan cities like Mumbai where millions of people are moving from one place to another. When poster is fixed inside the vehicle, it is called car card whereas when it is written on the vehicle it is called traveling displays.

d) Sandwich Boards:

Sandwich board is another interesting form of outdoor advertising. In this form, two advertising boards are joined at one end. It goes without saying that advertising massage is written on both the boards. A man (sandwich man) walks in between the two boards. Obviously people from both the sides of the road come to know about the advertising massage. This sandwich man puts a funny dress, walks between the two boards and reads the

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advertisement slogan with amusement. He goes on repeating advertising massage again and again to attract the attention of viewers and passers by. Some local dealers and retailers make use of elephant or camel for carrying advertising boards or sandwich boards. This is a cheap method of advertising. It is popular in the rural and semi urban areas. The influence of such advertising hardly lasts long.

e) Tall Man Advertising:

Tall man is another device is used for advertising and popularizing product. Here a man is made to walk on stilts. Due to the use of stilts the height of the man gets doubled. Such a tall man wears a funny dress and reads the advertising slogan in an interesting manner. Many a times his dress suggests the product which he is advertising. He attracts the attention of the passers by due to abnormal tallness, interesting announcements, and funny dress. Normally cigarettes manufacturing companies such as Cavanders cigarettes, use this method for advertising their brands.

f) Umbrella advertising:

In the umbrella advertising, the slogan or the advertising massage is written on a big umbrella. A person carries this umbrella from place to place. Sometimes, he sits at a crowded place and goes on revolving the umbrella. One, who carries the umbrella, puts on a funny dress and goes from street to street. Such media was popular in the past. Now its use is restricted only to the local market. Similarly, such advertising is of no use from the viewpoint of literate people who cannot read the massage. Its effect is rather momentary.

g) Sky Writing or Balloon Advertising:

Skywriting or balloon writing is the latest and the advanced technique of outdoor advertising and publicity. A balloon is a round shaped, airtight rubber envelope inflated with a gas, which is lighter than the air. This balloon is then floated in the air. The advertising massage is impressed on the envelope in very bold and eye catchy letters. Attractive colour combinations are used to write slogans on the balloon. In order to impress upon a large number of people balloons are kept higher in the sky over the sea beaches or in busy localities or in upon space frequently visited by people. Some companies make use of helicopters for carrying banners of which advertising massage or slogan is written. Smoke writing is another form of outdoor advertising, which is adjunct to sky writing technique. Here, advertising massage or slogan is conveyed to people by means of letters formed with the help of smoke. The influence of this advertising does not last long because such advertisement can be seen only momentarily. This is natural as smoked letter very soon drift away as the wind blows.

h) Transit Advertising:

Another form of out-of-home advertising is transit advertising. While similar to outdoor in the sense that it uses billboards and electronic messages. Transit is targeted at the millions of people who are exposed to commercial transportation facilities, including buses, taxis, commuter trains, elevators, trolleys, airplanes and subways.

Transit advertising has been around for a long time, but recent years have seen a renewed interest in this medium. Due in part of increased number of women in the workforce (they can be reached on their way to work more easily than at home), audience segmentation

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and the rising cost of TV advertising, yearly transit ad spending increased from $43 million in 1972 to over $900 million in 2001. Much of this spending has come from packaged goods companies such as Colgate, Nestle, and Kraft - General foods that like transit’s lower costs and improved frequency of exposures. Other retailers, movie studios, and business-to-business companies have also increased expenditures in this area.

o Advantages / Merits of Transit Advertising:

I. Exposure:

Long length of exposure to an ad is one major advantage of indoor forms. The average ride on mass transit is 45 minutes, allowing for plenty of exposure time. As with airline tickets the audience is essentially a captive one, with nowhere else to go and nothing much to do. As a result riders are likely to read the ads – more than once. A second form of exposure transit advertising provides is the absolute number of people exposed. About 9 million people ride mass transit every week, and over 9.4 billion rides were taken in 2001, providing a substantial number of potential viewers.

II. Frequency:

Because our daily routines are standard, those who ride buses, subways and the like are exposed to the ads repeatedly. If you rode the same subway to work and back every day in one month you would have the opportunity to see the ad 20 to 40 times. The locations of stations and shelter signs also afford high frequency of exposure.

III. Timeliness:

Many shoppers get to stores on mass transit. An ad promoting a product at a particular shopping area could be very timely communication.

IV. Geographic selectivity:

For local advertisers in particular, transit advertising provides an opportunity to reach a very select segment of the population. A purchase of a location in a certain neighborhood will lead to exposure to people of specific ethic backgrounds, demographic characteristics and so on.

V. Cost:

Transit advertising tends to be one of the least expensive media in terms of both absolute and relative costs. An ad on the side of bus can be purchased for a very reasonable cost.

o Limitations / Disadvantages of Transit Advertising:

I. Image factors:

To many advertisers transit advertising does not carry the image they would like to represent their products. Some advertisers may think having their name on the side of a bus or on the bus stop bench does not reflect well on the firm.

II. Reach:

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While an advantage of transit advertising is the ability to provide exposure to a large number of people, this audience may have certain lifestyles and/or behavioural characteristics that are not true of the target market as a whole. For example, in rural or suburban areas, mass transit is limited or nonexistent, so the medium ids not very effective for reaching these people.

III. Waste coverage:

While geographic selectivity may be an advantage, not everyone who rides a transportation vehicle or is exposed to transit advertising is a potential customer. For products that do not have specific geographic segments, this form of advertising incurs a good deal of waste coverage.

Another problem is that the same bus may not run the same route every day. To save wear and tear on the vehicles some companies alternate city routes (with much stop and go) with longer suburban routes. Thus, a bus may go downtown one day and reach desired target group but spend the next day in the suburbs where there may be little market potential.

IV. Copy and creative limitations:

It may be very difficult to place colorful, attractive ads on cards or benches. And while much copy can be provided on inside cards, on the outside of buses and taxis the message is fleeting and short copy points are necessary.

V. Mood of the audience:

Sitting or standing on a crowded subway may not be conductive to reading advertising, let alone experiencing the mood the advertiser would like to create. Controversial ad messages may contribute to this less than positive feeling. Likewise hurrying through an Airport may create anxieties that limit the effectiveness of the ads placed there.

In summary, an advantage for one product advertiser may be a disadvantage for another. Transit advertising can be an effective medium but one must understand its strengths and weaknesses to use it properly.

Advantages / Merits of Outdoor Advertising:

I. Outdoor advertising appeals to all classes of people due to deep colors, artistic work and

dramatic appeal of a slogan.

II. Since, posters, car cards etc. are displayed for long time, it has got high circulation value.

III. It facilitates intensive concentration in certain localities wherefrom the demand for the

product is likely to come up.

IV. Its effect is lasting as poster remains fixed at the same place for a considerably long period

and people happen to see it again and again.

Thus, it makes permanent impression on the public.

V. It forcefully supplements press advertising.

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VI. It makes an appeal to all and provides ample scope for the development of talents, skill and

arts.

VII. It covers unpleasant spots and makes them look attractive.

Limitations / Demerits of Outdoor Advertising:

I. The effect of outdoor advertising cannot be judged.

II. It has a nuisance value and adversely affects the decency of city life. Due to sticking of

posters, public sites and city walls look dirty.

III. The outdoor publicity by itself is not enough as its basic function is to remind the people.

Thus, it needs to be supplemented by other media of advertising and publicity.

IV. It cannot convey lengthy sales appeal in respect of a product and therefore it cannot take the

place of other popular media of advertising such as press advertising.

3. Radio Advertising:

In modern times, radio advertising is regarded as an important means of advertising. Its utility as an advertising, media has been considerably increased at present. That is why it is known as “commercial broadcasting”. Today broadcasting stations in all countries of the world attach more importance to the commercial advertisements. Radio advertising takes the form of spot announcements or sponsored programs. Spot announcements are made for a few seconds but they are made in an effective and impressive tone. Here, the advertiser has to pay advertising charges on the basis of the words announced or the time consumed. Spot announcements are replaced two or more times within a day. Sponsored programs consumed more time and make the programs interesting. Radio advertisements are usually accompanied by light music or interesting talk. It is advertising by sound and voice. A number of programs are broadcast on the radio which include dialogues, interviews, stories, plays, songs, listeners request and so on. The advertisements are cleverly inserted and regularly repeated in between the programs, but they are so arranged that the listeners do not feel the repetition.

Commercial advertising started in India in November 1967 on the All India Radio by starting “Vividh Bharti” services. Today almost all broadcasting stations including Mumbai, Delhi, Calcutta, Madras, Pune, Nagpur, etc. have taken up advertising announcements.

Nowadays people are not giving that much importance to radio as compare to TV and Internet but because of development in technology they are using mobile phones or cellular

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phones. Today there is FM facility in the mobile phones. This FM is nothing but the most popular radio stations. And through this FM facility still radio advertising is possible.

Advantages / Merits of Radio Advertising:

I. Radio advertising makes an appeal to all those who listen to radio programs. Thus, it reaches

to a large number of people. It has wide coverage as advertising massage goes to millions of

people at one time.

II. It is more effective to combined advantage of sound and voice.

III. Due to tape recording facility the programs and announcements can be repeated any number

of times.

IV. It is more appealing as it is personal in approach. Naturally it creates positive impact on the

minds of listeners.

V. It can be intensively concentrated in certain localities by selecting the convenient

broadcasting stations.

VI. Radio advertising is audio and hence suitable foe all categories of listeners literate and

illiterate.

VII. It appeals to all sections of the society and listeners of all types can be covered. Sponsored

programs give the benefit of wide coverage.

VIII. Radio advertising can be made attractive and impressive with the use of good music, songs,

dialogues, interviews and so on.

Limitations / Demerits of Radio Advertising:

I. In radio advertising the advertising massage goes only to those who possess a radio set. It is a

costly medium of advertising due to high rates of advertising.

II. It is not suitable to all types of products.

III. Listeners hardly pay attention to the commercial advertisements unless they are very

effective. It is a common experience that listeners switch off the radios when the same

massage is repeated.

IV. It is difficult to assess the result of radio advertising.

V. It can be heard but cannot be seen. It has audio effect but video effect is not possible.

VI. Its importance is fast reducing due to the popularity and extensive use of TV and Internet

advertising.

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VII. The government and naturally, the advertiser have to follow the rules and regulations of the

government while using this medium of advertising control radio advertising.

VIII. It may not succeed unless other media of advertising supports it.

4. Television Advertising:

Television advertising is the latest addition to the existing media of advertising. This is a very sophisticated media of advertising, which is the gift of science and technology. This media has become very popular in the recent times due to its greatest attention value at least from the viewpoint of urban population. The advertisement through TV is very effective as well as impressive. Its effect is lasting because it is a combination of sight, sound and motion. TV advertising is very effective because it simultaneously appeals to the eyes and ears. It facilitates demonstration as well as explanation of the product. Due to this media, it is possible for the manufacturers to give the demonstration of his product on the TV set. TV advertising gives the benefit of salesmanship and publicity. In advanced countries like America, England, and Japan TV advertising is very popular and common. In India also in becoming very increasingly popular. TV advertising may be in the form of spot announcements or short films shown between TV programs and sponsored programs. TV advertising is an impressive and effective medium because it makes positive impact on the viewers. TV advertising is superior to Radio advertising and film advertising, as it is an audio and visual in the character. Naturally it gives the benefits of advertising and salesmanship. It has a strong appeal especially for the younger generation. The introduction of colour television network and satellite channels has given new dimension to TV advertising.

Advantages /Merits of Television Advertising:

I. TV advertising enjoys the benefit of salesmanship and publicity. It facilitates the

explanation of the product along with its demonstration. TV advertising is extremely

impressive due to the audio-visual benefits.

II. It gives personal touch in advertising and the massage goes directly to every person looking

at TV.

III. It possesses greatest attention value.

IV. Due to recording facility, spot announcement and sponsored programs can be repeated any

number of times.

V. TV advertising can be heard without any exertion. A person can enjoy television programs

while doing his work.

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VI. It is flexible in the sense that advertisement can be intensively done only is certain locality

by selecting suitable transmission center.

VII. It raises the status of product selected for advertisement.

VIII. It gives quick benefit to the advertiser in the form of new customers and more sales.

Limitations / Demerits:

I. TV advertising is the costliest media and therefore it is beyond the reach of small

manufacturers or advertisers.

II. Due to limited range of telecasting it does not succeeding in approaching all prospects. Thus

it makes an appeal to a limited number of people.

III. It interferes with the entertainment of the listeners and possesses nuisance value. Listeners

get bored and irritated on account of repetitions of spot announcements. Listeners even start

programs only when the advertisements of the sponsorer are over.

IV. TV advertising is extremely costly. Big companies which can spent lakhs of rupees on

advertising can use it. Services of experts are also necessary for TV advertising.

V. There is heavy rush on TV advertising and booking of specific time for advertising is rather

difficult. Advertising at a wrong time may not be effective.

VI. TV advertising covers small area. It makes appeal to a limited number of prospects. There is

lot of wastage when advertisement is given at a wrong time.

VII. Selection of program that will appeal to all categories of people and also of all age groups is

rather difficult. This restricts the coverage of the prospects.

VIII. Fast advertising of many products within a short period affects the advertisers, as they do not

get the desired effect. Viewers simply forget all advertisements given quickly one after the

other.

5. Film Advertising:

Film advertising is completely new medium of advertising. Here, the advertising films are specially prepared for advertising the product. Such slides and propaganda films are shown on the screen in theaters and at other entertainment places including railway stations, parks, etc. big concerns advertise through slides. The advantage of advertisements made in theaters is that there is no necessity of searching an audience. The films are also exhibited at places like hotels, gardens, railway stations, clubs, fairs and exhibitions. Film advertising is appeals to the eyes and ears both and produces expected impact on the minds of the audience. It possesses greatest attention value and carries the sales massage to big audience.

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Advertising films are of different types, which include technical films, educational films, institutional films and narrative films. Film advertising caters to the requirements of all and usually produces desirable results.

Advantages / Merits of Film Advertising:

I. Film advertising possesses the greatest attention value and appeals to a large number of

prospects simultaneously. Thousands of people go to see movies everyday and advertising

massage reaches to all these people vary effectively.

II. It is more impressive as it simultaneously appeals to eyes and ears both.

III. It inspires confidence of dealers by clearly explaining the technique of production.

IV. It is convenient to bring to the notice of the public the manufacturer and distributors who

own and manage the business.

V. It is more elastic. Advertising films can be shown in all parts of the country or in few cities

depending upon the distribution of prospects.

VI. It removes language barriers and appeals to all, whether educated or uneducated, male or

female, young or old.

VII. It is suitable for advertising consumer goods of daily use including soap, washing powder,

toothbrush, cosmetics and so on.

VIII. The advertiser can make an appeal directly to the prospects. He can bring personal touch in

his advertisement.

IX. Film advertising has educative value. It can give information and knowledge to viewers

along with advertising massage.

Limitations / Demerits of Film Advertising:

I. Film advertising is a costly media of advertising. The production of films is very expensive

and only rich concerns can afford it.

II. It interferes with the entertainment of the people and possesses nuisance value.

III. It usually appeals to limited number of people staying in urban areas and does not reach to

rural population.

IV. The available experience shows that people hardly take any interest in looking at films

prepared for advertising. Usually people go out of the theaters at the time when

advertisements are shown and return for the main show.

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6. Direct Mail Advertising:

In direct mail advertising the advertising massage is sent to the prospects directly through post. The services of post offices are utilized for distributing advertising material among prospects. Since it dispatches advertising material through post, it is called “direct mail advertising”. It directly appeals to the persons for whom it is meant and facilities personal touch. It is an effective medium if it is properly planned and executed. Direct mail advertising is possible through the following media. –

a) Letters and circulars

b) Leaflets and folders

c) Catalogues and booklets

d) House organs and bulletins

e) Samples, calendars and novelties

f) Dealer aids.

Advantages / Merits of Direct Mail Advertising:

I. Direct mail advertising facilitates personal touch and satisfies the individual ego of the

prospective buyer.

II. It is more effective as the advertising massage directly goes to the person for whom it is

meant. Moreover the massage reaches the prospects at the convenient time.

III. It facilitates elaborate explanations and presentations of statistical information. It clearly

explains advertising massage, its utility and its superiority over other products.

IV. It is possible to judge its impact on prospects.

V. It establishes permanent relations with the customers.

Limitations / Demerits of Direct Mail Advertising:

I. Preparation of reliable mailing list is cumbersome and difficult.

II. If the mailing list is not up – to – date, there is considerable wastage in advertising efforts

and sales may not be promoted.

III. It is costlier media of advertising and reaches to a comparatively smaller number of persons.

IV. Advanced printing of sales literature makes it stale and even out of order.

7. Internet Advertising:

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Anyone who has followed the Internet industry over the last decade has seen an amazing series of events. Moving from a medium with almost no presence in the marketing environment to one that was the center of attention, the Internet experienced a boom that unfortunately became a bust. What some marketers thought would be the “be all and end all” of communications has now become a puzzle waiting to be solved, as many marketers have yet to discover what role the Internet will assume in their communications program.

Some companies have apparently solved the puzzle and have effectively integrated the Internet into their marketing communications programs. Others have been successful as well, particularly when they view the internet as a component of the integrated marketing communications program and not as the only tool required for success.

Defining the Internet:

The Internet is a worldwide means of exchanging information and communicating through a series of interconnected computers. It was started as a U.S. Defense Department Project, but it is now accessible to anyone with a computer and a modem. While the most popular component of the Internet is the World Wide Web (www). There are many features of web. For marketers, a number of these features offer potential, but it is the Web that has developed as the commercial component.

In today’s Internet world, a company can immediately pull up the product and service offerings of a provider, without having to make a phone call or wait for a salesperson to visit. In turn, the same company can reach thousands of potential customers that it would not have been possible to reach without a website – at a significantly reduced cost.

Web Objectives:

When major corporations first began to conduct business on the Internet, they put up websites primarily for information purposes. Companies like Pepsi and Coca Cola had sites that were really not much more than online catalogues designed for information purposes only. The role of websites quickly changed, however; sites have become much more creative, promoting brand images, positioning and offering promotions, product information and even products for sale. With the introduction of Java in 1995, it became possible to create fancier graphics, audio and animation online. This resulted in marketers utilizing the Internet in an entirely new way, moving beyond the purely informational role. The objectives of disseminating information still remains but additional communications and sales objectives are now being pursued.

Advertising on the Internet:

Like broadcast or print the Internet is an advertising medium. Companies and organizations working to promote their products must consider this medium as they would television, magazines, outdoor and so on. Advertising of Internet employs a variety of forms.

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1) Banners:

The most common form of advertising on the Web is banner ads. Banner ads may be used for creating awareness or recognition or for direct marketing objectives. Banner ads may take on a variety of forms as well as a number of names such as side panels, skyscrapers or verticals. Initially banner ads constituted the vast majority of advertising on the Net, but studies indicating their questionable effectiveness have led to a decline in usage. Reports on click through rates vary, but most studies indicate a less than 1% response rate. A few studies have shown an increase in response rates in recent years. These findings may lead to increased use of this method of advertising in the future.

2) Sponsorships:

Another common form of advertising is sponsorships. There are two types of sponsorships. “Regular sponsorships” occur when a company pays to sponsor a section of a site. A more involved agreement is the content sponsorship; in which not only provides dollars in return for name association but participates in providing the content itself. In some cases, the site is responsible for providing content and having it approved by the sponsor; in other instances, the sponsor may contribute all or part of the content. Due in parts to the lack of effectiveness of banner ads, sponsorships have been increasing in popularity.

3) Pop -ups / Pop -Unders:

When you access the Internet, have you ever seen a small window appear on Netscape advertising AOL’s “Instant Messenger”? Such windows are known as pop- ups, and they often appear when you access a certain site. Pop-ups are usually larger than a banner ad but smaller than a full screen.

Pop-unders are ads that appear underneath the Web page and become visible only when the user levels the site. Go to Los Angels Times Website and when you leave you will almost certainly see an example of this form of advertising.

4) Interstitials:

Interstitials are ads that appear on your screen while you are waiting for a site’s content to download. Although some advertisers believe that interstitials are irritating and more of a nuisance than a benefit, a study conducted by Gray Advertising found that only 15% of those surveyed felt that the ads were irritating (verses 9% for banner ads) and that 47% liked the ads (verses 38% for banners). Perhaps more importantly, while ad recall of banner ads was approximately 51%, recall of interstitials was much higher, at 76%. Recently Acura introduced its Integra Type R model using an interstitial. Coca Cola commonly employ this ad form.

5) Push Technologies:

“Push technologies or web casting technologies” allow companies to “push “ a massage to consumers rather than waiting for them to find it. Push technologies dispatch web pages and news updates and may have sound and video geared to specific audiences and even individuals. For example, a manager whose job responsibilities involve corporate finance might log on to his or her computer and find new stories are automatically there on the economy, stock updates or a summary of speech by Alan Greenspan. Advertisers who flash their messages on the screen pay for the service.

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Display of goods:

Meaning of display:

As a supplement to advertising goods are displayed in the showcases in crucial areas or in the shop itself. The purpose is to attract the attention to the articles available in the shop. Display means the act of putting something on view. In the business world, display means arranging samples of products and new arrivals in an attractive and eye catchy manner. It is an art of skillfully arranging products so that passers by cannot resist the temptation of visiting the shop. Proper display of goods appeals to buying motives of people and induces them to visit the shop and to buy the goods. Display of goods means arranging selected goods in an attractive manner just on the front side of the shop and also inside the shop at convenient places. It is a supplement to the advertising and acts as a sales promotion technique. Display of goods can be made attractive, impressive and eye catchy with the help of neon signs, rotating stands and other decorative material. Display includes attractive window display, interior decoration, arrangement of goods in showcases and near the counters. Display is an invitation to people to visit the shop. “New arrivals” are shown to people through displays. Display of goods is now, treated as a part and parcel of publicity campaign of manufacturers and retailers. Window display is a quite common in the case of all retail shops. Thus, display is nothing but arranging samples of products in an attractive manner with the object of bringing it to the notice of the people at once. It is a selling technique of arranging the goods in eye catching and attractive manner so as induce people to buy goods. Display may be made in the windows of the shop or at the railway station or bus stations where large number of people are coming and going. The main object of display is to attract the attention of passers by.

Manufacturers undertake display of their goods or products at their own premises or at their sales offices. Sometimes, big manufacturers and retailers do displays through showcases or boxes at the railway stations, bus stations and at other busy and crowded places. Display gives an idea about the goods available in the shop. It is realistic in nature and hence more effective. Display of goods is an expensive activity but is essential in the present competitive marketing. Expenditure on the display of goods is a profitable investment for more customers and more sales.

Importance of Display of Goods:

Display of a goods is important in modern consumer – oriented marketing. It is an essential supplement of salesmanship as it prepares proper background for salesmanship. The fact that each and every shop – keeper uses this technique indicates its importance in sales promotion. Display is rightly treated as near direct salesmanship. In big self-service shops it does the work of salesmanship. Sometimes, manufacturers provide display material to retailers for publicity purpose. The psychology of consumers is also favorable to display of goods. Many customers enter in the shops and ask for articles as per the samples displayed. Thus, attractive display fetches more of the would be customers and promotes sales. It makes an instant appeal to the eyes of “would be” customers.

In brief, display of goods is a publicity and sales promotion technique. It is a specialized job. Attractive display needs artistic mind, imagination and knowledge of human psychology.

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Advantages of Display of Goods:

I. Attracting attention:

Display of goods attracts the attention of the passers by. Naturally it has greatest attention value. It induces outsiders to visit the shop. It appeals to the eyes of passers by and induces them to step into the showroom.

II. Reminding the exact needs:

It reminds customers of their needs and requirements. This encourages them to purchase goods. It serves as the reminder to the customer of their exact needs.

III. Helping advertisement and salesmanship:

It has got maximum attention and advertising value. It serves like silent salesman. It acts as an aid to advertising and salesmanship.

IV. Helping the buyers:

Display of goods enables the customers to see for him features, colour, size, shape etc. of the product before buying decision is taken. It enables the buyers to take rational decisions about the purchasing.

V. Helping the sellers:

It supplements of manufacturers, salesman and increases confidence of dealers and distributors of the product. It not only increases turnover but also the dealer’s confidence in the sale ability of the product.

VI. Individuality to the product:

It not only gives distinct identity to retail store but assure the producer that due publicity of his product is being done for better sales performance. Thus display gives distinct identity to the product and the manufacturer.

VII. Sales promotion:

Display of goods is an important dealer aid as dealers are convinced about the advantages of stocking goods of specific wholesalers and manufacturers.

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Forms of display:

Display of goods is possible in different ways. Forms of display means the methods and techniques used for the display of goods. These forms or methods of display are as follows:

FORMS OF DISPLAY

(1) (2) (3) (4) (5) (6)

Window Sign Boards Interior Showcases & Trade Exhibitions

Display on shop front Display Show Rooms Fairs

Solus Related

Display Display

1) Window Display:

Window display is a modern technique of advertising and publicity. Window means the front position of the shop. Window display means keeping samples of new arrivals attractively in the front portion of the shop. Through such window display, goods are brought to the notice of perspective buyers. The attention of people moving on the road is diverted towards the shop due to window display. It is an attractive exhibition of goods in the front side of shop. Such display gives maximum view of the goods to the outsiders for the roadside. This creates attraction in the minds of prospects and they are encouraged to enter the shop. The selection of proper side for window display is very important. The display also needs periodically changes. The use of attractive lighting, decorative material, rotating stands etc. makes window display more attractive. It is vital factor affecting sales. Window display is economical and useful form of advertising especially in retail trading. Window displays sell more than what they cost. In window display consumers are not only shown goods bit are made familiar with them. Window display technique is used effectively in big cities like Mumbai and Delhi. This kind of silent salesmanship can be made more effective trough the use of new technique including the use of electronic devices. The responsibility of window display should be given to one who knows the art of salesmanship.

Followings are the essentials of an effective window displays:

a) A window should be rectangular. This means it should have more width and less height.

This enables passers by to see the sample at a glance.

b) The frame of the window should not be very eye catchy. It should focus more attention on

the product than on frame of the window.

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c) The glass of window should be thick as well as transparent. This will enable the visitor to

have proper look at the product and also keep the product safe.

d) There should be proper lighting arrangements. Proper colour combinations should be used

to make it impressive and appealing. Colors should not be very goody and glaringly bright.

They should be soft and compatible with one another making pleasant appeal on visitors.

e) The window glass must be daily cleaned so as to display of product should be changed

periodically.

f) There should not be over crowding of product in the window. Only a few novelties and

new arrivals should be displayed at the window to attempt the passer by.

g) Price tags should be attached to the product. Price tags should be avoided in case of very

costly products.

Window displays are of two types:

i. Solus display

ii. Related display

i. Solus display:

In the case of solus display, only one article is displayed in an attractive manner. Here, prominence is given to the display of single article. The article displayed in ultra modern and has some outstanding merits and features. Normally in the jewellery shop we find solus display of a diamond ring or diamond necklace. Nowadays-even dealers dealing in watches also display new watches and bracelets in their window in a very eye catchy manner. At present Titan and Fast track people are using this technique on massive scale.

ii. Related display:

In related display the prominency is given to the display of a few related products for example, during rainy season umbrellas, raincoats, gum- boots etc. are displayed side by side to attract the attention of passers by. Similarly a shop dealing in products exclusively used by ladies display in a window so that each product advertisers the other and also facilitates the convenience of consumers. We often come across window display of a lady wearing beautiful saree, jewellery, and also with sophisticated cosmetics around.

2) Sign Board an shop front:

Signboard on shop front is another important form of display for sales promotion. Proper signboard gives identity to the dealer and the shop. The size, design, lettering of the signboard

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should be carefully designed. It depends upon the number of factor like the size of the shop, the locality in which shop is located and the signboards prepared by the competitor in the vicinity.

The board on the shop front should be unique and it should be capable of distinguishing shop from that of competitors in the vicinity. It has immediate impact on the customers and shop also gets the identification. Therefore because of advertising particular shops indirectly products can be advertised. For example if a girl always goes to a particular cosmetics shop because of its popularity then automatically she always try to purchase cosmetics from that shop only. Indirectly it is profitable to those brands companies because they can indirectly advertise their products in that shop.

3) Interior display:

Interior display is one of the techniques of internal advertising and publicity. Interior display is an attempt to arrange article in an artistic and attractive manner within the shop premises. New arrivals, posters, boards, etc. are arranged at convenient place to attract the attention of customers. Goods are also kept in an attractive manner in showcases and stands. The purpose of interior display is to attract the attention of customers to various articles available in the shop. Interior display is not useful to attracting the attention of outsiders. It is a supplement to window display and creates a pleasing impression on the customers. It creates an impression of orderliness, neatness and efficiency. Special attention is given to interior display in big retail shops like departmental stores. Frequent changes are made in the interior display for attracting the attention of customers. Interior display should systematic and decent. It should be decorative as well as functional but should not disturb the free movement of salesmen and customers. It should facilitate easy picking and should be free from dust and dirt. Many manufacturers supply display material to small retailers for publicity purpose. For interior showcases, counters, lighting arrangements, posters, etc. are useful. Interior display is a type of interior decoration. It creates pleasing atmosphere in the shop. Modern interior display is attractive, space saving and convenient to salesman and customers.

4) Showcases and Showrooms:

Showcases are nothing but cases made up of glass doors. They are used for the display of goods within the shop. Customers can easily see articles kept in showcases. Such cases are used for interior decoration and display of goods. Nowadays we observes such showcases at railway platforms and bus stations where ready made garments, footwear, etc. are displayed. The showcases are usually of attractive designs and are well protected by glass covers. The showcases act as silent salesman. They are similar to window display but are kept inside the shop. They are convenient for the display of small household goods.

Showrooms are used not only to display goods but also to demonstrate the uses of an article. They provide an opportunity to the buyers to examine the goods closely. Such demonstration is necessary in the case of costly goods and machines. For FMCG these showrooms are not that much beneficial as compare to shops. They are useful for industrial goods like bikes, TV, refrigerators.

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5) Trade Fairs:

In the olden days regular markets had not come into existence. In the absence of regular markets, consumers were finding it very difficult to buy essential commodities. Hence to offer them convenience of buying, fairs were periodically held at certain places. At such fairs a large number of people used to come together which provided an opportunity to traders to sell their goods. In order to attract a number of people business used to organize fun fair activities and stage dramas and other entertainment items. Thus, in the olden days trade fairs were organized to provide marketing facilities to people. Even today such fairs are very common in backward states of India where regular markets do not exist for consumer and industrial goods. It provides an opportunity to people to buy novelties not available in the local markets.

In market times such ancient fairs have been replaced by commercial and industrial fairs, which are organized elaborately. Like ancient fairs here also we find fun n fair and entertainment activities. However, they are business oriented and considerable business activities are conducted at such fairs. Trade fairs can be regarded as a powerful sales promotion tool. At such industrial, commercial and agricultural fairs different stalls are constructed and given to leading enterprises for displaying their goods. Even government organizations participate in trade fairs for displaying the products of state enterprises. Today, fairs are being organized at national or even at international level.

6) Exhibitions:

In order to display latest innovations exhibitions are now quite common in the field of business and industry. Trade associations and chambers of commerce generally organize trade exhibitions. This also be sponsored jointly by two or more industrial and commercial enterprises. The object of a trade exhibition is to display latest innovations and demonstrate their merits. The exhibitions provide first hand information about the product displayed. They are useful in introducing new products and in educating people about the new uses of the product. Sales literature is supplied to visitors and an arrangement is made of demonstrations. It helps in popularizing the product to a great extent. Hence, leading industrialists, businessmen and manufacturers actively participate in the exhibition. It also facilitates image building and provides an opportunity to study competitor’s products, its technical specialties, sales techniques etc. Thus, healthy competition is promoted through industrial exhibitions. The customers are also enabled to compare goods of different manufacturers, which results into wise selection of the product. Thus, exhibition widens market for goods and help in the sales promotion.

In order to organize exhibitions, the sponsors hire a large vacant plot and the required space is rented out to the interested parties for displaying their products. In advanced countries sponsors of the exhibitions provide complete data regarding visitors who generally visit the exhibitions. On the basis of this information the firm can take decisions regarding participation and display strategy. The work of designing the exhibits is generally entrusted to experts in the line. In order to be effective, the exhibits selected by the firm should be attractive and should arouse the interest and satisfy the curiosity of the visitors. The articles are arranged artistically and with imagination so as to impress upon the minds of the visitors. Suitable lighting arrangement is made to make the product look attractive. The artists make optimum use of electronic devices and dramatic appeal. To clear the doubts and explain the features and utility of the product salesmen are appointed by the staff holders. The salesmen selected are competent

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courteous and have complete information of the product and its specialties. It must be pointed out here that the participation in the exhibition is a costly affair. Stalls are rented out fabulous rent and organizing expenses are also high. But such expenses are more than compensated in the long run by high turnover and profit for the organization. Hence, the business enterprises should take into account gain in the long run and actively participate in the exhibition. It not only assists in advertising but also facilitates study of innovations, latest developments, competitor’s products, its superiority and the sales techniques adopted by the rivals.

Indian government is also encouraging various exporters to participate in exhibitions in order to promote India’s exports. Various facilities and concessions are given to the exporters for participating in the exhibitions. Participation of exporters in fairs gives wide publicity to Indian goods abroad and effective demand is created. The government of India have created a separate directorate named ‘Directorate of exhibitions’ to deal with matters related to participation in exhibition. The directorate encourages Indian manufacturers to participate in international exhibitions, arranged exhibitions of Indian goods abroad and opens showrooms at leading industrial and commercial centers. Participation in international fairs and exhibitions is arranged through ministry of Foreign Trade and the Indian Council and Commodity Board also origins or participate in specialized fairs or exhibitions abroad.

Brand Management Systems:

Brand management systems are divided into two parts.

♫♫ Centralized system

♫♫ Decentralized system

♫♫ Centralized System:

A centralized organizational system is often used when companies do not have many different divisions, product or service lines or brands to advertise. Many companies prefer a centralized advertising department because developing and coordinating advertising programs from one central location facilitates communication regarding the promotions program, making it easier for top management to participate in decision-making. A centralized system may also result in a more efficient operation because, fewer people are involved in the program decisions and as their experience in making such decisions increases, and the process becomes easier.

At the same time, problems are inherent in a centralized option. First it is difficult for the advertising department to understand the overall marketing strategy for the brand. The department may also be slow in responding the specific needs and problems of a product or brand. As companies become larger and develop or acquire new products, brands or even divisions, the centralized system may become impractical.

♫♫ Decentralized System:

In large corporations with multiple divisions and many different products, it is very difficult to manage all the advertising, promotional, and other functions through a centralized department. These types of companies generally have a “decentralized systems”, with separate manufacturing, research and development, sales and marketing departments for various

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divisions, product lines or businesses. Many companies that use a decentralized system, such as Procter & Gamble, Gillette Co. and Nestle, assign each product or brand to a brand manager who is responsible for the total management of the brand, including planning, budgeting, sales and profit performance.

Decentralized brand management system

---------

Ad agency

Sales promotion

Package design

Merchandising

Ad agency

Ad agency

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Corporate

Finance

Brand Manager

Sales Product management

Advertising

department

Brand Manager

Marketing services

Brand Manager

Production Marketing R & D Human

Resources

Marketing research

A Procter & Gamble division using the category management system

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Vice president - Packaged soap and detergent division

Brand managers

Dishwashing

products category general manager

Advertising managers

(Each category manager will have one or more advertising

managers reporting to him or her for each specific brand,

Specialty products

category general

Laundry products

category general

Associate advertising managers

Assistant brand managers

DATA ANALYSIS

Questionnaire

Do Loreal provides Quality Products?

100 Person

40 Person Positive

60 Person Negative

No. of correspond Lamke Yes NO

100 40 60

Quality Yes 40%

No 60 %

93

Q) Are You Brand Loyal to Loreal?

No. of correspond Lamke Yes NO

100 18 82

100 Person

18 Person Positive

82 Person Negative

Brand Loyalty

No 82%Yes 18%

94

Q) For what purpose You use Loreal products ?

No. of

correspond

Eyes Lip Nail Face

100 20 10 20 50

Eyes Lip Color Nail Enamel

Face

20

10

20

50

Usage

95

Q)What do you think about the price level of Loreal products ?

No. of correspond High Low OPTIMUM

100 30 5 65

Price Level

High 30 %Low 5%Optimun 65%

96

Q) If not Loreal then which Other brand?

No. of

correspond

Revlon Orifkame Blue

Heaven

L’Oreal Lissome Other’s

100 22 18 8 39 7 6

Competitors Revlon 22%

Oriflame 18%

Blue heaven 8%

L'Oreal 39%

Lissome 7%

Others 6%

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Lakme CUSTOMERS:

1. Why do you prefer Loreal brand?

No. of

correspond

Quality Prestige Availability Price

100 30 10 40 20

price20%

quality30%

avalability40%

prestige10%

Lakme

98

2. How you came to know about Loreal Products?

No. of

correspond

TV Ads References Magazines Other

100 27 9 27 37

a) TV Ads c) Magazinesb) References d) Others

27%

36%

27%

9%

LorealTV Ads References Magazines Others

99

Q) Do celebrity endorsements in advertisements attract you towards Loreal

products ?

No. of correspond Lamke Yes NO

100 17 83

Celebrity Endorsement effect

No 83%

Yes 17%

100

Q)What inspire you to go for any cosmetic product?

No. of

correspond

Colour Quality Packaging Versatility Other

100 30 36 14 14 6

Color/ shades 30%

Quality 36%

Packaging 14%

Versatility 14%

Others 6%

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3. Do you want Loreal More Innovation Products to come up in the cosmetics segment?a) Yes b) No

No. of correspond Innovation Products Yes NO

100 17 83

1 20

20

40

60

80

100

120

Series1Series2

102

Bibliography

Brand management – Harsh V Verma

Marketing Management – Philip Kotler

www.loreal.co.in

www.interbrand.com

www.brandextension.org

www.brandchannel.com

www.samsung.com

www.barbie.com

www.harleydavidson.com

www.virgin.com

www.google.com

www.wikipedia.com

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