“ Marketing Mix ”

Snack food and Automobile Cos.Presentation By: Group N

Manushri JainKhushboo TandonPratima Kanodia

Ishan SinhaSachin Sharma

Dated: 3rd August 2006

“Marketing is a social process by which individuals and groups obtain what they need

and want through creating and exchanging products and values with others.”

– Philips Kotler

“The marketing mix approach to marketing is a model of crafting and implementing marketing strategies. It stresses the "mixing" or blending of various factors in such a way that both organizational and consumer (target markets)

objectives are attained.” - Neil Borden

− When it comes to marketing strategies, most people spontaneously think about the 4P (Product, Price, Place, Promotion).

−Market segmentation and the identification of target markets, however, are an important element of each marketing strategy. They are the basis for determining any particular marketing mix.

Identification of Target Market

Positioning

Marketing Planning

Market Segmentation

Marketing Mix

The 4 P’s

About The Companies

− Maruti Udyog Limited

Maruti Udyog Limited (MUL) was established in Feb 1981 Suzuki Motor Company was chosen from seven prospective

partners worldwide Brand Maruti means reliability, flexibility, trust and fun. It is an Indian icon, as many Indians had their first motoring

experience in it Its models range from budget car segment to premium car

segment. MUL has transformed from being a sales-driven organization

to a totally customer-centric organization

− Honda Siel Cars India

Honda Siel Cars India Ltd., (HSCI) was incorporated in December 1995 as a joint venture between Honda Motor Co. Ltd., Japan and Siel Limited to manufacture HONDA passenger cars in India

It is strongly associated with durability, reliability, quality and fuel-efficiency

Over the years, it has evolved as a product, starting with the first model launch in December 1997

Its models range from family car segment to super luxury saloon

Market Segmentation

Budget Car SegmentOver 60 % of the marketPreferred price range below Rs. 2.2 lakhsEntry level carMaruti 800 and OMNI

Compact Car Segment Around 15 % of the marketPreferred price range: between Rs. 3 lakhs and Rs. 5 lakhsSantro, Getz, Swift, Indica

Family Car Segment Around 10 % of the marketPreferred price range: between Rs. 4.5 lakhs and Rs. 5.5 lakhsMaruti Esteem, Ford Ikon, Hyundai Accent

Premium Car Segment Real world-class car and people who are ready to pay for itPreferred price range: flexible but around Rs. 6 lakhs is acceptable price.Opel Astra, Honda City, Mitsubishi Lancer, Honda Accord

Super Luxury Saloon A tiny segmentMercedes Benz E 229, E-250, Rover Montego, Audi 6, BMW

− Maruti Swift Maruti Suzuki Swift has changed the way people look at

Maruti as an automobile company The product is refreshing, just out from the drawing

board. USP: Swift is positioned with its unique style, looks and

attitude besides Maruti- Suzuki’s USP of fuel efficiency and performance

− Honda Accord With style, elegance, luxury, technology and performance,

the Honda Accord sets the benchmark for luxury sedans. A product high in levels of performance, comfort, luxury and

design. USP: Honda's USP has always been its technical prowess

coupled with an enviable reputation for quality. With unbeatable style, elegance, luxury, technology and performance, the Honda Accord sets the benchmark for luxury sedans

Product Mix

Specifications Swift Lxi Accord VTi - L MT

Body Two Box 5 door hatchback Two Box 4 door Sedans

Brakes

Front Ventilated Discs Ventilated Disc Type

Rear Drums brakes Disc Type

Dimension & weight

Front Track 1470 (mm) n.a.

Fuel Tank capacity 43 (Litres) 64.8 (Litre)

Gross Vehicle Weight 1415 (kgs) 1870 (kg)

Overall Height 1530 (mm) 1465 (mm)

Overall Length 3695 (mm) 4830 (mm)

Rear track 1480 (mm) n.a.

Wheelbase 2390 (mm) 2740 (mm)

Specifications Swift Lxi Accord VTi - L MTEngine

Bore x stroke 74.0 x 75.5 (mm) n.a.

74.0 x 75.5 (mm) 9.0:1 n.a.

Displacement 1298 (cc) 2354 (cc)

Fuel System Multipoint injection PGM-FI (Programmed Fuel Injection)

Performance

Max. Power 87 bhp @ 6000 rpm 142 bhp @ 5500

Suspension

FrontMacPherson strut and coil spring

Independent Double Wishbone with Coil Spring & Stabilizer

RearTorsion beam and coil spring

Independent 5-link Double Wishbone with Coil Spring and Stabilizer

Transmission

Transmission type

5 - speed manual transmission, with synchromesh in all gears

5-speed Manual Forward, Syncromesh type

Tyres & Wheels

Tyres 165/80 R14 Steel Wheel 205/ 65 R15

Colors Available− Swift : 8 Colors

Solid Bright red , metallic garnet orange , metallic mint frappe, metallic beam blue, metallic silky silver, metallic crystal gold, metallic Azure grey, metallic midnight black

− Honda Accord : 4 colors Nighthawk black pearl, desert mist metallic, signet

silver, taffeta white

Varieties & Services− Maruti Swift

Swift Lxi , Swift Vxi ( Non ABS), Swift Vxi (ABS), Swift Zxi

− Honda Accord Accord VTi - L MT, Accord VTi - L AT, Accord V6

− Warranty 2 years or 40,000 kms whichever is earlier

− Services 3 Free services

Price Mix

List PriceMaruti Ex Showroom

PriceHonda Ex Showroom

Price

Swift Lxi 4,05,113 Accord VTi - L MT

14,63,190

Swift Vxi ( Non ABS)

4,31,704 Accord VTi - L AT

15,34,496

Swift Vxi (ABS) 4,51,798 Accord V6 16,92,173

Swift Zxi 5,12,101

Place Mix

Maruti Honda

Promotion Mix

Maruti Swift Honda AccordAdvertising Agency:Lowe, O&M,CapitalHakuhodo Percept.

Advertising Agency:Tribal DDB

Bank Tie-Ups:CitibankState Bank of IndiaICICI Bank

Bank Tie-Ups:ICICI BankKotak Mahindra

Home Visit through ref. NA

True Value NAMaruti Auto-card NA

Trade Fairs and Melas

Cold callsWalk-ins

Sources− Rohan Motors Limited,C-9 , Sector-1, Noida− Ring Road Honda :40-42 Janpath, New Delhi-

110001

Snack Food Companies

− Parle Products Pvt. Ltd.− ITC’s Sunfeast

Product Mix

Sunfeast Parle

ITC ltd. Launched Sunfeast Biscuits on 28th July 2003

Sunfeast Glucose: Natural goodness of wheat

Orange flavored Marie along with regular Marie.

Butterscotch, Orange & Bourbon cream.

Parle Products began manufacturing biscuits in 1939

Parle G: high nutritional value and international quality; Variants: Magix and Milk Shakti

Marie with Digestive Marie

Orange, Mango, Pineapple & Elaichi

Glucose Biscuits

Marie

Cream Biscuits

Sunfeast Parle

3 new flavors:Coconut Cream: New flavor ,Enhanced by the presence of desiccated coconut in the cream.Strawberry and Pineapple creams : presence of Jagmag (flavored crystal balls); enhance taste and appearanceSunfeast entered the milk biscuit category :Sunfeast Milky Magic biscuits; tie up with 'Aavin’

Sunfeast Dark Fantasy: a dark chocolate and vanilla cream offering; super premium segment; select markets

Fun Centre: cream till the edges, highest cream content; flavors like chocolate, butterscotch, strawberry & milk cream

Parle’s Hide & seek: chocolate chip biscuits; premium segment

Cream Biscuits

Premium Biscuits

Sunfeast Parle

Further expanded: launch of 'Sunfeast Snacky' salted crackers in 2 unique variants; Chilli Flakes & Classic Salted

Sunfeast’s Latest offering: Golden Bakes; richness of pure butter with crisp cashews; 3 exciting variants: Butter, Cashew and Honey & Cashew; premium segment

Sunfeast Pasta Treat: whole wheat based non-fried product;4 exciting flavors; healthy snacking option for children

Parle’s Krackjack: sweet & salty taste

Parle Monaco: salted, light &crispy biscuits

Monaco zabardast jeera- seasoned with jeera.

Monaco bites- loaded with cheese ; shape

Others : Jeffs, Sixer & Nimkin

Sweet and Salty

Others

Place Mix

Sunfeast− In this regard, Sunfeast has been fortunate: thanks to

its tobacco business, ITC already had a good understanding of distribution channels.

− The company used its existing network of convenience stores -- the company's name for the hole-in-the-wall pan-beedi shops -- for Sunfeast. Not content with the existing resources, the company also looked at grocery stores and other retail formats.

− The brand is now available in nearly 1.8 million outlets.

Parle− The extensive distribution network, built over the years, is a

major strength for Parle Products. Parle biscuits & sweets are available to consumers, even in the most remote places and in the smallest of villages with a population of just 500

− Parle has nearly 1,500 wholesalers, catering to 4,25,000 retail outlets directly or indirectly. A two hundred strong dedicated field force services these wholesalers & retailers. Additionally, there are 31 depots and C&F agents supplying goods to the wide distribution network

− Parle biscuits and confectionaries are fast gaining acceptance in international markets also: Abu Dhabi, Africa, Dubai, South America and Sri Lanka, even sophisticated markets like USA & Australia

Promotion Mix

Sunfeast− In August 2003, a month after its launch, the company undertook

a major sampling exercise to promote the product. For two years then, the brand did all the usual rounds -- riding behind buses, blocking television spots, booking the corner space in newspaper

− Well differentiated advertisements, some which showed a complete cream world with cream rivers, cream mountains and cream trees, were targeted at kids watching cartoon channels.

− At the same time, on general entertainment channels, mothers received information on the importance of glucose, the wholeness of wheat and so on. Also, the company tied up with Bey Blades, the popular television series that was a rage among children, to promote itself.

− In April 2005, Sunfeast launched its major campaign. It signed on Hindi film actor, Shah Rukh Khan as its brand ambassador

− In the same year, as the official sponsor of the WTA tennis championship -- titled the Sunfeast Open -- the company had teenage sensations Sania Mirza and Mahesh Bhupathi campaigning for it. But that's not all. For promotions in southern states, Sunfeast has signed Tamil super star Surya as a brand ambassador.

− The company claims that it has been spending 35-40 per cent of its turnover from the biscuits segment on advertising and promotions. Going by that number, ITCs annual marketing spends are estimated to be in the region of about Rs 115-120 crore (Rs billion)

− ITC is clearly among the largest spender on ads and promotions in the biscuits category

− The company claims that it has been spending 35-40 per cent of its turnover from the biscuits segment on advertising and promotions. Going by that number, ITCs annual marketing spends are estimated to be in the region of about Rs 115-120 crore (Rs billion)

− ITC is clearly among the largest spender on ads and promotions in the biscuits category

Parle− They have relied on the entertaining advertising

campaigns on televesion and in print

− Some of them being Krackjack: Reunion Digestive Marie: Anti Marie Hide n seek : Jeep Ad Hide n seek : Bus stop, Mobile Parle g: Smart Kids

− Kajol and Hritik Roshan as the Brand Ambassdors

− The Parle marketing philosophy emphasizes catering to the masses. We constantly endeavour at designing products that provide nutrition & fun to the common man

− Corporate family day; Based on the premise that 'Happiness is togetherness‘ the campaign invites everyone to celebrate world family day, with their favourite biscuits

− Monaco: Rakshabandhan; This campaign promotes the festival of raksha bandhan by highlighting the light humour of brother-sister interaction

− Monaco: extra-light; With interesting visual variation this campaign communicates that Monaco is extra light and just right for those lighter moments

Price Mix

Sunfeast & Parle− The biscuits industry now has two clear models. Parle

products play the low price game at all varieties of biscuits from glucose to cream

− Essentially, Parle plays a high volume, low margin game. But

Sunfeast looks at a two-pronged strategy. High margins in cream variants and volumes from the Marie and Glucose segments

− For instance, cream biscuits from Sunfeast cost Rs 10 for 100 grams. Parle, however, only charges Rs 5 for its cream variants. Except for Hide & Seek, all of Parle's products lie in the price range between Rs 4 and Rs 6 for 100 gram packs

− In Glucose and Marie, the companies have little choice. As there is little differentiation, consumers are extremely price sensitive. But these segments are important. Marie and the popular glucose varieties make up for nearly 55 per cent of the Rs 4,000 crore biscuits segment

− Glucose and Marie variants straddle price points of Rs 4-6 (for 100 grams)

− Parle's shares in terms of volume is 38.4 per cent; ITC's Sunfeast has a 6.7 per cent share. In terms of value Parle has a 31.3 per cent share and ITC's 6.3 per cent

− Biscuits have always been a low margin, high volume game. Parle have very high volumes and can easily afford to lower their margins. Sunfeast too may have to drop its prices to be in the reckoning

Why this difference?− For many years Parle has developed products to cater to

masses. Most parle offerings are in the low & mid range price segments

− Parle products such as parle g is consumed by people of all ages, rich to poor, living in cities & in villages. Thus, the promotion /marketing strategy for Parle emphasizes on Brand promise Catering to masses Providing nutrition

− The philosophy of giving value for money positioning helps generate large sales volumes for parle products

− On the other hand, Itc being a new entrant in biscuit industry tries to be among the premium brands. also with Sunfeast the market witnessed major product innovations in years

− As compared to subtle advertising by parle which focused on stories of common man and used it in their promotion. Itc Sunfeast does aggressive advertising to capture middle & upper segment market, in metro and mini metro cities.

− In 2006,however , identifying change in market environment, by seeing a flurry of innovations from Itc and Britannia

− Parle launched digestive Marie in early 2006.and parle is all set to launch at least 2 new products before the end of this year

Thank You