Product and STP

It is important for marketers to realize that the product' offering they manufacture, and the branding they undertake largely
depend on the target segment. The concept of segmenting, targeting and positioning (STP) lays the foundation for seeral aspects
of marketing. It is important to undertake research on seeral aspects of STP. Segmentation is a process by !hich a group of
consumers !ith similar needs are targeted by the marketer. There are t!o ma"or bases !hich are used together for segmentation.
#ne is the demographic base and the other is the psychographic base. $emographic base is concerned !ith the age, income,
education and professional status of consumers. %en at a ery broad leel, one can obsere that the products re&uired by the
elderly, for e'ample, are ery different from those re&uired by the younger population. The market for products for the elderly
has not been e'plored much. In (apan, there is a niche market (small and profitable one, !ith special needs), for products that
cater to people aboe )* years of age. Though the ma"or thrust of marketing in the Indian market is associated !ith the youth
segment, there is a significant market for products !hich can be positioned for elderly people. +ood products !ith different
combinations of ingredients (different from the usual combination), foot!ear and apparel are some of the categories !hich offer
scope for marketers. Psychographics, is associated !ith the lifestyle of consumers,in simple terms, it is the manner in !hich
consumers spend their money and time. +or e'ample, a highly paid corporate e'ecutie has a lifestyle !hich is different from the
consumer !ho is in the lo!er end of the economic strata. -earing designer apparel, status.oriented brand of !atch, using state.
of.the.art electronic products and gadgets, haing a foreign holiday and spending the !eekend in resorts and pubs are perhaps
some of the typical lifestyle associations of the up!ardly mobile e'ecutie. /arketers !ill hae to gather information on the
lifestyle of consumer segments they are interested in through marketing research, concerning the actiities, interests and
opinions (0I#) of the respectie target segment. The information arising out of 0I# research can be used to position the brand
and also to formulate the marketing mi' elements for the respectietarget segment. +or instance, if it is kno!n that a segment of
consumers for a brand of apparel are fre&uent fliers of a brand of airline, the information can be used for promotional purposes
linking the brand of airline and the apparel. The "oint promotion can inole a contest, a special offer e'clusiely for these
consumers or een an adertising plan to e'pose the consumers, through in.flight magazines. It should be noted that lifestyle
analysis is e&ually applicable to een the lo!er end of consumers in any category.
Positioning strategies with behavioural aspects
-hile the psychological aspects of marketing are coered in a different section, it is necessary to kno! ho! the behaioural
aspects are used in brand positioning strategies. 1eeds, motiation and personality are related concepts, and it !ould be
appropriate to consider them together in a practical conte't. 1eed is a state of depriation. /otiation is the drie !hich impels a
person to!ards achieing his goals and personality is a set of inner characteristics !hich enable a person to decide ho! he or she
should respond to the enironment. /otiation and personality could be linked,a person !ith a high degree of confidence may
be assertie. There are a number of theories on personality +reudian theory assumes that the behaiour of indiiduals !ould be
based on unconscious needs and dries. 0ccording to this theory, the human personality consists of three parts,identity, ego and
super ego. The 2id3 is the component !hich consists of impulses and primitie instincts !hich urge the indiidual to moe
to!ards immediate gratification. 0 number of product categories !hich may not hae !ell.defined functional attributes and
!hich are oriented to!ards sensual pleasure formulate communication, may appeal to the 2id3 part of the personality. Perfumes,
cigarettes and li&uor are some categories !hich make use of the approach. 4lack 5night and 4acardi brands are e'amples !hich
hae adopted this route to communication, !hen adertising of the category !as allo!ed.
There are t!o kinds of needs,primary and secondary. Primary needs are associated !ith physiological needs like thirst,
hunger and se'. Secondary needs are ac&uired needs like sense of belongingness, status orientation and self.esteem. 6onsumers
may not consciously kno! their secondary needs and it is in this situation that the symbolism associated !ith brands could
appeal to consumers. 7ouis Philippe, Park 0enue in apparel, /ercedes in automobiles and +astrack in !atches are some
e'amples !hich reflect the symbolism inoled in brands. 4y associating themseles !ith these symbolic brands, consumers are
able to gratify their psychological needs. +urther research into such needs of consumers is !arranted. 7iril soap !as launched in
the 8)9*s after a research agency found that house!ies had a distinctie need for fantasizing and this !as captured in the
adertisement for 7iril,!aterfall, freshness (denoted by green) and the indulgence of the model in the adertisement. This
communication is still being used (!ith ariations brought in) een after more than t!o decades.
Multiplicity of needs
1ormally, consumers hae more than one need and analysing the multiplicity of needs (!ith their importance) could proide
insights for marketers. 0 buyer of the 2no.frill3 /aruti may be interested in the brand because of its lo! price, fuel economy and
ade&uate comfort, but lo! price could be the prepotent need !hich could take the brand into the 2consideration set3 of
consumers.
Types of goals/needs which can be used in positioning
:oals can be positie or negatie. 0 positie goal is one to!ards !hich behaiour is directed and a negatie goal is one from
!hich behaiour is directed a!ay. This concept is useful !hen ;SP is researched. +or e'ample, 2!ould consumers !ant !hite
teeth or !ould like to preent decay in the category of toothpastes3 could be a decision !hich needs to be taken by the marketer
and the concept of goals are likely to be useful in this situation. 1eeds from the ie!point of application to a practical conte't
could be classified as e'trinsic and intrinsic. %'trinsic needs are those !hich motiate an indiidual to achiee an end result.
4uying a status symbol (designer !atches or furniture) to impress others could be associated !ith e'trinsic needs. If an
indiidual buys a car for his o!n comfort and en"oyment, it gets associated !ith intrinsic needs. It may be !orth!hile to find out
the link bet!een intrinsic and e'trinsic needs before a communication package is formulated for a brand. The follo!ing e'ample
!ill e'plain this concept of e'amining the link bet!een intrinsic and e'trinsic needs.
Intrinsic and e'trinsic needs for a brand of teleision
The list of needs proided in the T< e'ample are suggestie ones !hich illustrate the concept. In.depth research is re&uired
to find out the degree and importance of these needs. This !ould also be useful to select the imagery, !hich needs to be
associated !ith the chosen ;SP. +or e'ample, 6ielo carried an imagery in !hich the proud o!ner of the brand reflected his
happiness at procuring the brand after he had achieed success. This typically inoles both intrinsic and e'trinsic moties.
Self-concepts and their implications on positioning
In almost any category in the realm of consumer products, symbolism makes use of self.concept. Self.concept is the image
an indiidual holds about himself=herself. There are a ariety of self.concepts !hich could be useful to marketing
communication. They are as follo!s.
(i) 0ctual self.concept,ho! the indiidual perceies himself=herself. 0 group of consumers may perceie themseles as
rebellious, non.conformists !ho seek indiiduality and freedom in their lifestyles. 6harms brand of cigarettes, during the early
8)>*s, !as perhaps one of the early brands in the Indian conte't to create a brand personality using the po!er of self.concept.
2The spirit of freedom,6harms is the !ay you are3 !ere some of the copy statements in the adertisement of the brand,
!hich featured young models. To add to the 2claims3 about 2freedom3 they had packaged the brand in a pack !hich carried a
denim type of isual design. This !as the time !hen denim ("ean), !hich has its origin in the ;S, !as getting accepted in the
Indian conte't for its functional and symbolic appeal (normally associated in the !est !ith 2casualness and freedom3) and
made the brand an inherent part of the youth culture during its time. The brand had used either actual self.concept or others
actual self.concept (ho! an indiidual !ould like others to perceie him=her).
(ii) Ideal self.concept,this is concerned !ith ho! an indiidual !ould like to ideally perceie himself=herself. There is a thin
line of difference in that the ideal self.concept has an oertone of futuristic aspiration in it (more deeper than an actie self.
image),the indiidual perceies the 2ideal image3 of himself=herself based on his=her aspirational needs, and this !ould
depend on the indiidual's status,financial and educational, childhood upbringing, enironmental e'posure and personality
traits. 0n upcoming businessman !ho is drien by aspirations may buy the 7acoste brand of apparel !hich is associated !ith
the profile of a globe trotter, club membership, some kind of e'clusiity and perhaps, certain upmarket sports. There could
also be a ariant of this kind of self.concept in the form of others ideal self.concept3 (ho! others should ideally perceie the
indiidual). The indiidual may use status symbols to impress others (others ideal self.concept), but may resist from using
them !heneer there is a situation !here the indiidual feels others do not matter (personal discretionary time=leisure etc., is.
?.is professional !ork). /arketers could use such psychographic information !ith timestyles (ho! indiiduals spend their
time) to come out !ith appropriate appeals for products and serices (acation and 2!eekend3 cars are e'amples of categories
!here these kinds of orientation are likely to be useful).
(iii) %'pected self.image,this kind of image is bet!een actual and ideal self.images. It is likely to be useful to marketers
because changing the 2self image3 radically to!ards the 2ideal3 image !ould be difficult, and the e'pected self.image is one
!hich consumers could identify !ith. 0 typical e'ample is the adertisements of computer educational institutions !hich
attempt to dra! prospectie candidates for their courses, generally ranging from a fe! !eeks to t!o years. Though there is an
element of aspiration, prospectie candidates feel it leads to a situation !hich is a 2stepping stone3 (completion of the course to
get a "ob) rather than the realization of their dreams (the ultimate ideal self.image). +or a gien target segment, the short.term
aspirations may reflect actual self.concepts and the long.term ones the ideal self.concepts.
Indiidual differences, as reflected through self.perception, sensitiity to others perception and rational and irrational needs,
form the basis on !hich brands carry their psychological !arfare in the minds of consumers.
Segmentation and positioning aspects in evolving markets
%oling markets like India face marketing challenges that are &uite different from the ones !hich deeloped markets hae,
in terms of managing brand association, pricing and enhanced leels of consumers aspirations. +or instance, the price !ar
initiated by !ell.kno!n brands in the detergent category has literally eliminated the premium segment in terms of price (though
there seems to be some lo!.profile actiity from 7: !ith a premium priced brand). There are too many price points and stock
keeping units (S5;s) across brands in the soap and confectionery categories. %en in the case of 2durables3 category, the
introduction of product.line ariants, in general, is much more than !hat it !as in the past. There are seeral aspects !hich need
to be e'amined in this conte't. +irst, the consumer aspires to upgrade (!hether this is happening and ho! this should ideally
happen are connected issues). 7ifebuoy's repositioning !ith upgraded ariants is an interesting e'ample. Second, an aerage
consumer has become sensitie to alue offered by brands,either in terms of price or in terms of the intrinsic benefit offered at
a higher price point. The emergence of seeral discount brands and higher priced improed offerings in the soap and biscuit
categories are e'amples. :odre"'s 1o. 8 is an e'ample of ho! the brand initiated the strategy of offering seeral ariants (like
sandal) to the lo!er segment !hen such ariants hae been associated !ith higher segments in the category. Third, apart from
e'pecting alue, the consumer is also caught in generic competition, !hich may force him=her to do!ngrade in a fe! categories
!hile attempting his other categories. +or instance, the consumer, in order to balance his=her household budgets may alternate
bet!een a good brand of tea and loose tea and=or a lo!.priced detergent bar=a lo!.priced detergent po!der=medium.priced
detergent po!der. The behaiour adds a comple' t!ist to the conte't, !hich makes strategies ery unpredictable and calls for a
dynamic approach (!hich may also be affected by competitors moes). The situation especially is comple' !hen too many price
points are inoled !ithin a narro! price band, offering a ast choice to the consumer (edible oil to colour teleision sets). 0n
additional factor !hich is associated !ith the black bo' of the consumer is the symbolic orientation !hich also caters to the
psyche of the consumer, apart from the functional attributes !hich may be an important criteria for brand patronage. This is
reflected in mundane products haing a strong symbolic orientation@ and such kinds of communication are on the increase in
recent times. 1estle's Sunrise, 4ru or 1estle's Select in the coffee category, 6hakra :old in tea (See Plate A), the !armth behind
gifting of Titan, the relationship proposition of Baymond's are e'amples of such communication. Specifically, three aspects seem
to be important in addressing the emerging markets through strategies, !hich re&uire dynamic changes,marketing
communication, product.line management and changing aspirations of consumers.
Diversity of segments/appeals/contexts in an emerging market
The follo!ing e'amples and obserations proide important inputs to reflect the state of communication in the Indian
marketing conte't.
6adbury's $airy /ilk adertisments sho!ed adults in touch !ith the child !ithin them, thus "ustifying chocolate
consumption as en"oying the taste of life. The second round of adertisments for the brand sho!ed people giing different
e'cuses for eating the chocolate. It also emphasized on certain 2usage3 situations to eat chocolates. This is probably a good
e'ample of ho! markets could be e'panded in an emerging market !hen the lifestyle orientation based on !esternization is
gaining ground,adults eating chocolates is a !estern cultural habit.
Tata Salt touched on patriotism in its adertisments, !ith the !ords 2desh ka namak3. %en in this day and age of mercenary
materialism and unmitigated cynicism, these simple !ords had an earthy appeal that !ent straight to the heart, +or cached in this
phrase lay all those old.!orld sentiments of honesty, integrity and loyalty,not to mention patriotism,that stirred the soul. Tata
is a brand !hich has gro!n !ith the passage of time, and patriotism could probably hae an impact, as it stands in contrast to the
image of !esternization !hich is diffusing at a fast pace in seeral product categories.
In an emerging market like India, there is a need for marketers to take into consideration, the 2rural.urban3 similarities as !ell
as the 2rural.urban3 diide. The similarity relates to consumer perception concerned !ith certain specific categories like soft
drinks, apparel, shampoos and chocolates. 0 high degree of aspiration.based or fun.oriented appeals could be used for both the
markets (perhaps, regional language ariations !ill call for a ariation depending on the region@ 6oke and +anta are e'amples in
!hich regional celebrities are used besides regional language e'ecution). 0spiration could be lifestyle.based or functionality.
based. 7ifebuoy's family health repositioning based on hygiene is another e'ample of ho! marketing communication should
take into account changing consumer aspirations. The brand also has different ariants and S5;s. In certain other categories like
detergent bars or floor,cleaning solutions, there may hae to be more of application=a!areness appeals. 0 brand may, for
e'ample, e'plain ho! the detergent bar is best suited to the type of !ater in a specific region or create a!areness about using a
po!erful floor.cleaning solution. The type of market is !hat ultimately matters. %en in the lifestyle.based category like soft
drink, a niche drink has got to hae a different treatment. +or e'ample, Bed 4ull, a fast.gro!ing energy.oriented soft drink, uses
e'treme sports associations, and this is in tune !ith the changing aspirations of the youth. :ien the niche orientation of the
drink, the same strategy could !ork !ell for the brand in the Indian conte't too.
+or a brand like 7u' that !as in the maturity stage, C77 used an innoatie technology to inole the customer in its print
adertisements. They used ultraiolet (;<) ray.sensitie printing inks in a picture of a !oman, !hich darkened !hen e'posed to
sunlight. %en an established brand like 7u' needs to cut through the clutter to grab attention, een before perception takes place
in the mind of the consumer (comprehension of the brand !ith its updated benefits). In an enironment !here the consumer !as
being bombarded !ith arious e'change offers, 7: differentiated its products on the basis of technology, the adertising of
!hich appealed to the emotion of the Indian consumer, rationally. This helped 7: build a strong bond !ith its customers. The
emotion !as appropriately backed up by 2ne! to the Indian3 market features.
Soap market in ndia
4ath and sho!er products also hae the highest penetration and a!areness leels in both urban and rural markets in India.
The regional markets for bar soap and talcum po!der products are saturated, !ith a plethora of brands, and products ying for
the consumer's disposable income. 4ath and sho!er products remained the largest category !ithin the Indian cosmetics and
toiletries market in A**D, and accounted for D) per cent of the total market sales in terms of alue. ;rban penetration is almost
completely saturated, !hile rural pockets continue to shoulder the !eight of national progress. -ith demand rising for other
consumer non.durables, regional consumers are do!ngrading to cheaper bar soaps, or bar soaps !hich come !ith freebies,
discounted prices or promotional offers, as they are then good alue for money. The industry in India classifies the arious price
segments of bar soap products as tabled belo!.
Segment Price!"s/#$ g%
6arbolic E.**
$iscount 9.**
Popular 88.**
Premium 89.**
Super
premium
DE.**
-ith the premium end shrinking, most companies are finding consolation !ithin the popular segment. #ne of the reasons for
the decline in the alue size of the market !as improement in &uality -ith technological adancements, the T+/ (total fatty
matter) content improed, so that consumers had to use less soap to clean better. $oe, $ettol and /ysore Sandal :old are
positioned as super premium brands, !hile 1irma, 6inthol and 7u' belong to the popular category. 7ifebuoy and :odre"'s 1o. 8
are in the discount category=higher end of the discount category, !hile the carbolic category almost ceased to e'ist !ith the
repositioning of 7ifebuoy in A**A. 4ar soap products !ith added.alue skin care benefits are fast gaining in popularity. /ost
price bands hae seeral price points=ariants aimed at either upgrading the consumer temporarily or permanently. 0 consumer
can, once in a !hile (depending on the pressure on his generic e'penses across categories), try out a higher priced ariant of a
brand or a higher priced brand from the same company or get upgraded (as a part of the regular purchase cycle) to a higher
priced offering because of his=her enhanced affordability at that point in time. There is a lot of adertising actiity in the soap
category. 6ertain brands e'tol functional benefits like smell, reducing body odour, freshness, recommended by doctors, etc.
6ertain other brands highlight their symbolic benefits like making one feel like a star, increasing one's popularity, a caring
mother's choice, etc. 0 situational conte't is also built into the adertising of soaps that promise fairness, protection from ;<
rays, etc. The presence of functional and symbolic benefits in adertisements and the situational parameter make the soaps
category a fit case to e'plore the effect of e'pansion adertising as a precursor to brand loyalty. 4alancing functional benefits,
symbolic appeals and timing the right combination of good functional attributes and symbolic brand orientation (!hich can go
beyond adertising, like an eent associated !ith beauty care=hair care) !ithin a price band is likely to be a conceptual approach
to get oer the comple'ities of the +/6: markets. Price band focus e'plores the possibility of consumer upgradation. %oling
markets and their diersities demand much more than "ust creatie adertisingF either for ne! or for established brands.
&rand positioning and ethnic culture
-hile there may be a number of positioning strategies in the urban conte't, !hich reflect the gro!ing influence of
!esternization, there hae been a number of communication campaigns that hae been coneying the desired impact !ith an
ethnic touch. There are a number of adantages of using the ethnic route (sub"ect to the appropriate selection of target segments).
%thnic appeals normally are dra!n from the culture of the specific market, !hich reflects the practices, rituals, taboos and
behaioural orientation on alues that hae been passed on from one generation to another. These may also be useful to enable
consumers to 2connect3 !ith situations !ith !hich they are familiar. -hile dramatization of 2!esternized3 situations could be
effectie through aspirational fantasy, specific situations dra!n from the consumers cultural settings !ill be useful because of a
higher degree of identification through belongingness e'perienced by the consumer !hen he=she emotionally connects !ith the
situation. This could be best illustrated by comparison bet!een Titan's adertisement and :odre"'s Store!el adertisements. The
former has an element of dramatization !oen around the 2!armth3 e'pressed by the 2gift.giing3 behaiour. The aspirational
fantasy element of 2gift.giing3 brought the brand into the consideration set of consumers !ho shopped for gifts (not "ust
!atches). -atch as a gift and the picturization of the T< spots clearly reflect a !estern orientation. The changing lifestyles,
especially in urban markets, !ere conducie to such a positioning strategy. In the case of :odre"'s Store!el (storage cupboard),
the 2emotional3 connect (though portrayed as a gift) is achieed against the backdrop of 2marriage conte't3 in !hich the bride
receies the 2brand3 as a gift. This campaign !as launched after consumers !ere &uite familiar !ith the brand, and the emotional
appeal enhanced the brand's e&uity.
There are many different !ays in !hich a brand could be positioned using the ethnic approach. This can be done byF
(i) Identifying specific behaiour(s) = practices !hich !ould be connected !ith the brand=product category.
(ii) Identifying specific alues in a cultural conte't !hich !ould be inputs to marketing communication.
(iii) Identifying certain beliefs !hich need to be taken into consideration before an adertising campaign is formulated.
(i) 6ombining elements of a specific culture !ith changing cultural trends (!esternization).
() 6apturing a sense of nostalgia associated !ith a specific culture@
(i) ;sing 2stereotypes3 !hich hae been connected !ith a specific culture, and
(ii) Identifying specific cultural traits !hich could be used for product categories=brands.
0 combination of seeral kinds of cultural dimensions makes it !orth!hile for marketers to consider positioning strategies
oriented to!ards culture.
'ultural behaviour as a positioning underpinning
There are a number of behaiours !hich could be associated !ith a specific culture. Some of these behaiours may hae their
origin in certain kinds of beliefs. These could be associated !ith product categories@ for e'ample, bindi !orn by !omen in most
parts of India. It is essential that a brand name selected for such a product category should hae an 2ethnic sounding3 name. 0
!estern name is likely to be counterproductie. Tang, the orange "uice, !as initially introduced as a breakfast "uice in a country
!here, een in the upper strata of the society, such practices may be unusual. 0n interesting e'ample !hich effectiely makes
use of cultural behaiour is the Pepsodent commercial. 6onsuming snacks on the !ay to school (and back) is a 2cultural habit3
passed on from one generation to another oer the last seeral decades. It is typically a behaiour !hich could be associated !ith
the masses. The commercial for the toothpaste captures the behaiour (and the traditional behaiour of the mother scolding the
child). This gets the attention of ie!ers before the brand benefit of 2protection3 is coneyed effectiely. 5ellogg positioned
itself as a breakfast cereal in a country !here food preferences are ery regional in nature. +ood is a strong cultural dimension
and any brand in the category !ould do !ell to take into consideration the cultural dimensions associated !ith food. 4read has
been in the market for seeral years, but it is still not a part of the staple food. It may be recalled that een a 6hinese food like
noodles (/aggi brand) !as positioned as a 2A.minute3 conenience.based snack food for children, making use of the cultural
practice of proiding home.made snack food for children, !hich is prealent across the different layers of social strata. 1ature.
based ingredients hae been used for ages for skin care in India. 1ihar, /edimi' and <rinda in soaps, and /eera in the
shampoos category are e'amples of brands !hich hae had an effect on such practices. The focus on 2!hiteness3 in clothes led to
the creation of the 2!hitener3 category for clothes,initially Bobin 4lue and then ;"ala during the 8))*s. The practice of
applying soaps for !ashing clothes is so strong that a brand like 0riel !hich pioneered the category of compact detergents at the
higher end had to introduce a soap for the lo!er end of the market. It is further interesting to note that the brand had initially
adertised that soap is not re&uired if the compact detergent is used for !ashing clothes. 0 ma"or market !ith lots of potential in
the Indian conte't is the toy market. 7eo/attel, +isher and +unskool are !estern brands. -hile there are a number of offerings
in the unorganized sector, a brand could be built up around toys against the backdrop of India's rich and ethnic cultural heritage
(mythologies and stories dra!n from Indian culture).
mportance of cultural values for brand positioning
6ultural alues matter to a number of product categories and positioning strategies. 6harms, the cigarette for the youth
launched in the 8)>*s, became the rage among young smokers because the positioning !as in consonance !ith the changing
alues,2the spirit of freedom,6harms is the !ay you are3 symbolizing adenture, independence and a non.conformist attitude.
The 2"ean3.like packaging added to this appeal. Co!eer, cultural alues hae not changed enough for marketers to launch a
cigarette for !omen (/s !as the brand launched during the 8)>*s). <alues are importantbecause they reflect culturally
acceptable behaiour. <alentine's $ay cards may hae been almost a taboo before a decade, but atleast in urban markets they
hae caught on. 4acardi, the brand of li&uor, !hich positioned itself on the 2spirit of en"oyment3 (during the days of li&uor
adertising) and its success among the intended target audience, also reflect the changing alues. The launch of 6lose.;p brand
of toothpaste during the 8)>*s !as perhaps ahead of the alues !hich preailed during those times. The 26lose.;p3 smile !as
adertised through cinema halls and !as positioned to!ards teenagers. 7ater on, the permissieness !as diluted !ith the group
that !as brought into 6lose.;p commercials.
There may also be certain beliefs !hich could hae an impact on marketing communication. The cultural belief that fairness
is beautiful has made +air G 7oely a strong brand. The recent commercial (T< spot) of the brand is based on the cultural belief
about the superiority of the boy child oer the girl child. The girl child proes that she could be as successful as a boy to the "oy
of her parents (thanks to +air G 7oely). <icco turmeric cream positioned itself as a cream !hich !ould be useful for the
2!ould.be bride3 to enhance her comple'ion, and applying turmeric for skin care is a part of the Indian tradition in parts of the
country. <icks <aporub captured the emotional bond bet!een the mother and son to coney the brand's benefit. 6linic Special
also captures the traditional care a mother sho!ers on the daughter. The 2family togetherness3 is a cultural aspect !hich could be
used by marketers. Prote' and 0ll 6are !ere soaps positioned as 2family soap3 in the past. 7ifebuoy has relaunched itself as 1e!
7ifebuoy to!ards the family. The 2togetherness3 platform for the 8*9.year.old 7ifebuoy may be ery appropriate, gien the rural
presence of the brand. 6aring for the family is another appeal !oen around the present.day house!ife's role. Trupti atta used
this concept and currently, 4harat :as is using it as 2croking food and sering loe3.
-hile Pond's !as almost a household name till the 8)>*s in the category of talcum po!der, a significant cross.section of
talcum po!der users may hae s!itched oer to creams=lotions because of the belief that 2self.enhancing3 po!ers are better !ith
2substitute3 products. 0 brand, !hich has been accepted by the masses on a cultural belief, should launch seeral ariants=better
alternaties of the product to the same segment, to ensure that the segment stays !ith the brand. The cultural belief about beauty
care !ould differ from one region to another and marketers in this product category hae to be sensitie to the 2region.specific3
tastes of the people. %en in the conte'ts of rural markets, consumers in the states of Tamil 1adu, 4ihar and #rissa e'hibit
different tastes and preferences, more because of their differing cultural interpretation of beauty care and the beliefs and taboos
associated !ith ho! a consumer should resort to beauty care.
0sian Paints presents a good e'ample of a company's attempts to associate its brands !ith seeral festiities around the
country. +or e'ample, seeral households especially in the semi.urban and rural areas of Tamil 1adu, may beliee in repainting
the house during Pongal festial to symbolically mark the beginning of a ne! year. 0sian Paints created specific brands !hich
!ere associated !ith such festiities.
Mixing culture with changing trends for brand positioning
0 type of effectie cultural appeal consists of mi'ing certain cultural beliefs !ith trendy products or adertising. Promise,
toothpaste !hich had a successful run, highlighted the efficacy of cloe oil used by people traditionally to control tooth pain.
6adbury's recent teleision campaign (for moulded type of chocolate) sho!s people of arious age groups (traditional ones
included) en"oying the chocolate. Traditionally, chocolate snacking !as associated more !ith children in the Indian conte't@ E
Star positioned itself to!ards teenagers@ and in the past fe! years, 6adbury's moulded chocolate has been targeted to!ards adults
belonging to arious facets of life. Snacking is a part of the culture (children and adults) and positioning a chocolate for adults
inoles a mi' of the tradition and oertones of !esternization, !here chocolate is a faourite snack for adults as !ell. 6ricket
has been a part of the culture in most parts of India and Pepsi made it contemporary, !ith its 2for the younger generation3
proposition reflecting fun and frolic and a strong association !ith cricket. Baaga collection from Titan is yet another e'ample of
contemporary positioning !ith ethnic oertones.
'ultural traits and their importance
2Indianness3 is a trait !hich a fe! brands hae used to make an impact on the target segment. 24eliee in the best3
highlighting the superiority of Indian.made 4P7 products featuring 0mitabh 4achchan is an e'ample of a specific cultural trait
being used to strengthen the brand !hich had already built up an image oer the years. The 2Camara 4a"a"3 campaign (the
original and the ne! one) has a blend of modern lifestyle and ethnic beliefs, and reflects the positioning that, at the outset,
2!estern.oriented3 youngsters are still 2Indians3 at heart. Buf and Tuf created an e'cellent commercial in !hich a modern youth
reflects the cultural trait of respect for elders through 2-e kno! %nglish. -e also kno! ho! to respect elders,3 bringing in an
appropriate theme to reflect the cultural alue.
Other kind of appeals from culture
0 sense of nostalgia concerning a specific culture could be a good approach to make the appeal, especially for a brand !hich
has been in the market for a number of years. /argo soap adopted this approach sho!ing a young !oman being nostalgic about
her e'periences during her childhood days, and there !as a strong cultural flaour to the nostalgia e'perienced. 0 cultural
stereotype is the 2measuring of a picture3 !hich is related to a specific culture. :randmothers are associated !ith traditional
medicine and remedies. 0yuredic 6oncepts (no! Cimalaya brand) used such stereotype to promote its offerings made from
traditional ayuredic preparations. Such stereotypes offer credibility to the brand. 4ru also initially used a cultural stereotype of
associating itself !ith the taste of filter coffee, !hich is a part of the South Indian culture.
6ultural dimensions could matter to a range of products and such inputs could be aluable to marketers,for both Indian and
/16 brands.
ssues that matter to marketing mix elements( in an evolving market
-hile there are a number of strategies and la!s for marketing success, there seems to be a need to e'plore the !ay in !hich
marketers could add alue to the company during days of recession. Past history !ith regard to marketing actions only seems to
complicate matters,!hile a stream of research suggests that constant adertising een during 2bad3 times improes the sale of
the brand, there is another research !hich makes out that almost 9* per cent of the adertising e'penditure under competitie
conditions does not contribute much to the brand. The only obserable strategy in recent times is the spate of freebies offered to
the consumer in both +/6: and durable categories. $elight seems to be the 2in thing3 to get the brands off the sheles of the
retailer. The follo!ing are certain considerations !hich may enable marketers to conceptually reason out strategies !hen they
operate against the odds (these aspects are more of a 2spring board3 kind than being 2la!s3 or 2rules3 during times of recession).
)re all consumers( price sensitive*
-hile by and large, consumers seem to be do!n.trading (moing from their regular brands to those !hich may cost less), it
might be !rong to assume that all consumers are price sensitie in a 2desperate consumer set3 like the Indian market. 4rands like
6olgate Total and Cimalaya are those !hich are not targeted to!ards the masses. These brands hae proided alue at higher
price points and hae identified a base of consumers !ho hae found alue in these brands. 6olgate Total !as repositioned as a
toothpaste !hich offers a 28A.hour3 protection (after haing failed !ith a skimming pricing during the 8)>*s) and Cimalaya has
been deliering alue through the traditional herbal route in both cosmetics category and oer.the.counter pharmaceutical
category. The alue in this case is also associated !ith a higher price point. -hile the alue of a brand is important at all times,
the success of some brands in both the +/6: and the durables categories emphasizes the fact that good alue (in comparison
!ith competitie offerings) could delier results at a higher price point een against odds. This is because, a niche segment is
prepared to (and can afford to) pay a premium if there are brands !hich satisfy the fastidious needs of the segment. 7: is
another brand !hich has registered success in recent times !ith its 2feature.benefit3 combination that has been uni&ue to the
brand. The brand certainly cannot be associated !ith 2freebies3@. 7: positioned itself on health.related benefits (by making use
of technology),preseration of nutrition !ith regard to refrigerators, healthy air !ith regard to air conditioners and easy
ie!ing !ith regard to teleisions. Santro is another brand !hich has met !ith success inspite of the deiation in design !ithin
the category of automobiles ('tall boy'). The success is based on a good product and e'cellent serice. 0ll the three brands are
relatiely ne! to the Indian market. There is a cross.section of consumers !ho are prepared to pay more for a better product and
serice. Serice (after sales) has been a dismal feature in the Indian conte't for the last seeral decades, though there hae been a
number of reputed brands. 0ny brand !hich is able to proide een an incremental alue addition in serice during times of
recession !ill be perceied better by the niche consumers.
Differentiation at the lower end of the market
#ne of the distinguishing features of the Indian marketing scenario is the presence of an unorganized sector in a host of
product categories,moulded luggage, edible oil, tea, biscuits, !atches, kids!ear, ethnic dresses for !omen, pens, se!ing
machines, foot!ear, furniture, toys, cook!are, fans, baby foods, "e!ellery and cassettes. If marketers could proide alue
preferably at a lo!er price point in these markets (better alternaties to the present substitutes at the same price or a lo!er price),
consumers are likely to upgrade to these products. This needs to be done !ith a &ualifier,brands !hich are introduced at lo!.
price points should be profitable !hen the entire product.line of the company is taken into consideration. Cindustan 7eer came
out !ith brands like Tiger (a combination of tea and tapioca) to upgrade consumers from the 2loose3 (unorganized) tea market@
and 0im !as a toothpaste introduced by the company to bring in consumers from the toothpo!der segment. Sustaining these
brands in a profitable manner is a challenge for the company, especially !hen it is making a number of offerings in the category
across different price points (and more so !hen some of these price points may be close to one another). <IP came out !ith 0lfa
initially to moe the consumers from the unorganized to the branded market (!ith a superior product). <ideocon's lo!.priced
semi.automatic !ashing machine targeted to!ards the rural areas and the lo!er end audio products from 4P7 are e'amples from
the durables category in !hich alue !as proided to the lo!er end offerings. There seems to be a ast potential in a number of
categories !here alue could be proided to the masses at the 2lo!er end of the pyramid3. 0 lo!er end offering has to be a 2no.
frill3 offering !hose &uality performance !ould be perceied better than the e'isting substitutes. Tiger brand from 4ritannia is an
e'cellent e'ample of a alue.based offering in a market structure !hich !as full of substandard offerings by the unorganized
sector. <endee edible oil (good &uality edible oil distributed in loose &uantities through ending machines) follo!ed a uni&ue
concept !hich may hae appealed to the masses. Some companies are attempting to tap the unorganized markets through lo!.
priced brand ariants. 6adbury's in chocolates, 6lose.;p in toothpastes and Caldirams in snacks are some e'amples of this
approach. -hile the penetration of the brand may increase because of this approach, the repeat purchase !ould be sustained only
if the fre&uency of such purchases increases@ and these companies !ould do !ell to come out !ith lo!.priced ariants (ne!
offerings and not "ust lo!.priced packs) to sustain brand loyalty.
mportance of category management in an evolving market
-hile the concept of category management is e'plained under a different section, managing a category of related products
from the ie!point of consumer needs is highlighted in this section, as it has a marked significance on the oerall marketing mi'
strategy. +or e'ample, a brand adertising its fairness cream or its fairness soap in a specific geographical region in a country
like India, benefits from the insights proided by category management. 6ategory management has significant implications for
marketing strategies formulated during recession. 0lmost all +/6: brands offer a number of ariants in their product.line to
appeal to seeral segments. $uring days of profitability, the impact of ariants that are not doing !ell may not be much on the
product.line profitability. There is a need to ensure that only those ariants !hich are profitable are maintained in the product.
line. 0 company in the business of hair care may be marketing hair oils, creams and shampoos. There may be seeral ariants
like those by hair.type or ariants like anti.dandruff, herbal, protein.based or the ones !hich are oriented to!ards cosmetic
benefits. 0 category consists of a set of brands from the same segment, !hich are related (in terms of consumer usage) or
substitutes to one another. There is a need for a database consisting of consumption=demand patterns, moement of S5;s, ho!
consumers substitute products in terms of usage, interchangeability and fre&uency and profitability from arious items and
product.lines in the category (for e'ample, creams, hair oils or shampoos in the hair care category). 6ategory management has
implications on the marketing mi' elements (including the shelf.space display) associated !ith all brands in the category. -hen
a company introduces a hair oil !ith italizer, ho! many consumers using the brand's shampoo !ith italizer !ill also s!itch to
the hair oilH Co! many of them !ill get to substitute the shampoo !ith hair oilsH Co! many !ould enter the brand user.ship
domain (ne! users of the brand)H Co! many consumers using a competitor brand's shampoo !ould s!itch.oer to the cream of
the brandH Such &uestions proide ery useful insights into consumer response to the category and these insights !ould be
useful in fine.tuning the supply chain associated !ith the category, and hence there is a possibility of optimizing the costs
inoled (procurement of ne! material, inentory leels, etc.). Surf %'cel Po!er !as introduced and priced bet!een Surf and
Surf %'cel in the product.line of detergents, a fe! years back. In a situation like this, a number of category.based insights !ould
be ery aluable to the company.
mpact of freebies in an evolving market
"ams, toothpastes, soaps, T<s, !ashing machines, refrigerators and ready.made !ear are "ust some of the product categories
in !hich freebies are gien to consumers simply to make them buy the brand. This raises a number of &uestions regarding the
impact of the freebies on the e&uity of the brand as !ell as the ob"ectie of such sales promotions.
(i) Co! do consumers react to such sales promotionsH
(ii) -ould these strategies be able to retain the consumer after he=she tries the brand (in +/6: products), or can these kinds of
sale promotions lead to relationship building in the case of durablesH
(iii) Co! !ould these sales promotion be effectie to ensure that competitie brands=companies !ith deeper pockets do not
react to such sale promotionsH
(i) 2Pushing3 the brand during difficult times is one aspect and measuring the profitability of such an approach is another. If
these sale promotions are "ust an 2inestment3, ho! !ould these brands recoer the inestment oer a period of timeH 0re
these back.up strategies deised to ensure the deelopment of customer relationshipsH
The ans!ers for these conceptual dimensions !ould ensure that the brand is follo!ing the marketing orientation and not "ust
a sales orientation@ besides, planning the sales promotion !ith these dimensions !ould also reflect the marketing acumen !ithin
the company. The dimensions are realistic enough for practising managers to e'plore and analyse, !ithout !hich the sales
mindset replaces the broader marketing mindset.
0 brand of soap has a sales promotion, !hereby a consumer buying three pieces of the brand !ould get a fourth one free. 0
competing brand introduces a ariant of the promotion. 0nother brand introduces a bonanza prize, !hich may be e&ual to
thousands of rupees. There is a need for any brand to create 2once in a !hile3 e'citement, but brands seem to be getting more and
more into the icious cycle of freebies. Is there any approach a soap brand follo!s, to identify and re!ard loyal users of the soap
in this clutter of freebies and point of purchase material at the retail outletsH In today's conte't, loyalty may be not "ust to one
brand (especially in the soaps category)@ a consumer may be loyal to more than one brand. 0t a minimum leel, there needs to be
a segmented approach to!ards identifying loyal buyers and non.loyal buyers before formulating sales promotion strategies. The
benefits of the sales promotion should help differentiate the t!o segments. This could be !orked out through appropriate
marketing research techni&ues.
In durables, the situation is not ery different. %ach brand seems to outperform the other on freebies, !ith the retailer adding
his bit (certain large.scale retailers kno!n as 2category killers3 may plan such strategies because they are able to effectiely
negotiate prices !ith manufacturers due to the olumes they sell). 0kai's initial sales promotion !as a phenomenal success
because it !as able to capitalize on a need unfulfilled by any other brand,e'change scheme !ith a reasonable price for the T<
set being used, regardless of the brand. It !as not freebies !hich !ere offered "ust for the sake of it. Is there any brand of durable
!hich coneys a special benefit to the user of the brand !hen the user is in the replacement phaseH This benefit should be better
than that gien to the non.user of the brand. 4P7, <ideocon and Philips are brands !hich are likely to hae a large number of
consumers !ho hae bought the respectie brand as their first buy@ and brands need to research and formulate strategies on
retaining these consumers !hen they enter the replacement market. Such strategies !ill also be useful to brands present in
multiple categories
+hat 'an )ttitudes tell us about 'onsumers*
6onsumers !ho like sushi are likely to eat it
6onsumers !ho like rich ice cream are likely to eat it
6onsumers !ho like to Ieat healthyJ !ill be likely to eat things that are not high in
calories

n reality , , ,
4;T K haing a positie attitude does not mean that !e3ll buy a specific product
-e distinguish bet!een attitude to!ard the ob"ect and attitude to!ard the behaior of
purchase

+hat is an )ttitude*
It represents !hat !e like and dislike
0n attitude is a lasting general ealuation of something . it has kno!ledge of that
something, liking or disliking, and the strength of the feelings.
They are lasting, but changeable
They help to direct behaior K e.g. do you recycle cansH

+hat functions do attitudes provide*
;tilitarian .does the clothing fit, is it appropriate, does it proide !hat !e needH
<alue.e'pressieF clothing says that you are a professional
%go.e'pressieF clothing coneys self.image
5no!ledgeF summarizes the image !e are trying to gie, a suit from LLLLLLL
coneys that you are a professional

The -ariety of 'onsumer )ttitudes

0ttitudes to!ard product K 6ampbell Soup at hand
0ttitudes to!ard company . Philip /orris, 5raft
0ttitudes to!ard a retailer K -al /art
0ttitudes to!ard product attributes K salt content
0ttitudes to!ard arious types of brand associations
7ogos K design K do you like the 1ike s!ooshH
Symbols K meanings K do you like the %nergizer bunnyH
Product endorsers K sports figures K do you like /ichael (ordanH
0ttitudes to!ard adertising K do you like the ads for the 4orgataH

)ttitudes. /ikes and Dislikes
4eliefs . no! that the consumer has learned about our product, !e assess their
belief system ( may be multiple attributes . running shoe)
0ffect (feelings) . !hether they like or dislike each attribute !hich they kno!H
4ehaior . !hat they do in response
Impact of alued other people
4ehaioral intentions s. 4ehaior
&eliefs. 'ognitive 'omponent of 'onsumer )ttitude
0 consumer belief is a psychological association bet!een a product or brand
and an attribute or feature of that product or brand
4eliefs are cognitie (based on kno!ledge)
The stronger the association of features or attributes !ith the product or brand,
the stronger the consumer3s belief
0re the consumers3 beliefs correctH
)ffect. 0motive 'omponent of )ttitude
Purchase decisions are continually influenced by affectie response
0ffect,the !ay in !hich !e feel in response to marketplace stimuli
It is emotie rather than cognitie (beliefs)
It is comprised of both our kno!ledge of stimuli and our ealuations of them
0ffectie responses can be ery general or ery specific
0ffectie component of attitudeF functional theory of attitude, the +ishbein
model, and the belief.importance model
The 1ishbein Model - discussed in class
)n )pplication of the 1ishbein Model


The 1ishbein Model2'hanging )ffective "esponses
6hange 4i . if the belief is that durability is !eak, find out !hyH Is this true or
"ust a rumorH 6an !e change the beliefH
6hange %i K if consumers don3t like an attribute, can !e change their feelingH
If they dislike paying oer ME*, can !e e'plain !hy it3s !orth itH 6an !e gie
them rebatesH
0dd a ne! 4i=%i combination K are there other beliefs or attributes that could
be addedH
ntention. &ehavior 'omponent of 'onsumer )ttitude
0ffect is not closely linked to actual purchase
4ehaioral intention,attitude to!ard brand purchase
0 far better predictor of behaior than either beliefs or affectie responses
4ehaioral intention modelsF
Theory of reasoned action
Theory of trying

Measurement of )ttitudes
Co! much do you like #reo cookiesH
7ike ery much . . . . . . . . . . . $islike ery much
Co! faorable is your attitude to!ard #reosH
<ery faorable . . . . . . . . . <ery unfaorable
#reos areF
:ood . . . . . . . . . . . . . . 4ad
1utritious . . . . . . . . . . . . . . . 1ot nutritious
1onfattening . . . . . . . . . . . . . . . +attening
I like #reosF
strongly agree neither agree disagree strongly
agree nor disagree disagree

ntentions
$o you intend to buy #reosH
S0 0 101$ $ S$ 10 $5
Co! likely is it that you !ould buy #reosH
<ery likely . . . . . . . . . . . . <ery unlikely
-hat is the probability that you !ill buy #reosH
*N 8*N A*N . . . . . . 8**N


Theory of "easoned )ction
4ehaior is a direct result of intention
T!o factors inoled in behaioral intentionF
0ttitude to!ard the act of purchase
Sub"ectie norm K the feelings of others !ho may be important to us

Sub3ective 4orm
S1 refers to the perception of !hat other people think !e should do !ith
respect to a certain behaior, such as brand purchase

S1 consists of
1ormatie beliefsF the perceied e'pectations that significant others think the
consumer should or should not behae in a certain !ay (buy the brand)
/y doctor thinks that I should gie my baby a particular brand of baby food.
/otiation to complyF the e'tent to !hich the consumer considers the possible
opinions of significant others !hen forming an intent to purchase
$o you agree !ith the doctorH
)pplying the Theory of "easoned )ction to 'hange ntentions
It helps to identify those attributes most important in causing consumers to
form positie (or negatie) attitudes to!ard the purchase of a product
6hanging attitude to!ard purchase
6hange beliefs
6hange affect

It helps to identify and helps to ad"ust sources of social pressure and their
possible role in intention formation
6hanging sub"ectie norms
6hange 1ormatie beliefs K !hat others think
/otiation to comply K do !e !ant to do !hat the others !ant us to doH
5ierarchies of 0ffects
-hat is the likely orderH
4eliefs, affect, behaior . cognitie
4eliefs, behaior, affect . learning
0ffect, behaior, beliefs . hedonic
ITry it, you3ll like itJ

Multi-attribute models
0ssume that all the attributes of products are ealuated
People hae beliefs regarding a particular product3s haing each attribute
Some attributes are more important than others
4uying running shoes !ith the proper fit isF
1ecessary . . . . . . ;nnecessary
Co! likely is it that 1e! 4alance shoes can gie you the correct fitH
<ery likely . . . . . . . . <ery unlikely


deal point models
6ompares your brand ersus an ideal held by consumers
/easures the perceptions of the brand3s location along an attribute continuum
/ultiplied by an importance leel for each attribute

f the importance of an attribute is high
0nd our performance is poor
If the competitor is also poor, !e hae neglected an opportunity
If the competitor is good, !e are at a competitie disadantage
0nd our performance is good
If our competitor is poor, !e hae competitie adantage
If our competitor is good, !e hae competition

f the importance of an attribute is low
0nd our performance is poor
If the competitor is also poor, !e hae a null opportunity
If the competitor is good, !e hae a false alarm K it doesn3t matter
0nd our performance is good
If our competitor is poor, !e hae a false adantage K it3s not !orth it
If our competitor is good, !e hae false competition