INTRODUCTION OF TOPIC:
Marketing communications is a subset of the overall subject area known as marketing. Marketing has a marketing mix that is made of price, place, promotion, product (know as the four P's), that includes people, processes and physical evidence, when marketing services (known as the seven P's).
How does marketing communications fit in? Marketing communications is 'promotion' from the marketing mix.
Why are marketing communications 'integrated?' Integrated means combine or amalgamate, or put simply the jigsaw pieces that together make a complete picture. This is so that a single message is conveyed by all marketing communications. Different messages confuse your customers and damage brands.
So if a TV advert carries a particular logo, images and message, then all newspaper adverts and point-of-sale materials should carry the same logo, images or message, or one that fits the same theme. Coca-Cola uses its familiar red and white logos and retains themes of togetherness and enjoyment throughout its marketing communications.
Marketing communications has a mix. Elements of the mix are blended in different quantities in a campaign. The marketing communications mix includes many different elements, and the following list is by no means conclusive. It is recognised that there is some cross over between individual elements (e.g. Is donating computers to schools, by asking shoppers to collect vouchers, public relations or sales promotion?) Here are the key of the marketing communications mix.
The Marketing Communications Mix.
- Personal Selling.
- Sales Promotion.
- Public Relations (and publicity).
- Direct Marketing.
- Trade Fairs and Exhibitions.
- Advertising (above and below the line).
- Merchandising (and point-of-sale).
- EMarketing (and Internet promotions).
Integrated marketing communications see the elements of the communications mix 'integrated' into a coherent whole. This is known as the marketing communications mix, and forms the basis of a marketing communications campaign.
OBJECTIVES OF STUDY:
- To study the wide area which company presently not tapped in the market.
- To study the advertising strategy of a company to grab the market.
- To study the detailed model of IMC planning process of company.
- To make a media plan.
- To make budget which include absolute and relative cost.
ANALYTICAL AND DESCRIPTIVE RESEARCH:
In analytical research we have to use the fact & information already available & analysis of these to make an evaluation of project. And in descriptive research we have to do research and make the conclusion by using the information which is available in past and we go in the depth of the subject and then make some hypothesis and make some plans, recommendations and suggestions. So for this term paper project I choose this type research.
The project include secondary source of data. The data collected through these sources has organized, analyzed & interpret so as to draw conclusion & to arrive at appropriate recommendations.
The secondary sources of data include books, magazines, annual report, and website of Britannia industries Ltd. Company which contains the details which is helpful for making my project report.
STEPS IN RESEARCH METHODOLOGY:
- COLLECTION OF DATA
- ORGANISATION OF DATA
- PRESENTATION OF DATA
- ANALYSIS OF DATA
- INTERPRETATION OF DATA
INTRODUCTION OF COMPANY:
Britannia Industries Limited is an Indian company based in Kolkata that is famous for its Britannia and Tiger brands of biscuit, which are highly recognised throughout the country. Britannia is one of India's leading biscuit firms, with an estimated 38% market share.
The Company's principal activity is the manufacture and sale of biscuits, bread, rusk, cakes and dairy products.
Dairy products contribute close to 10 per cent to Britannia's revenue. Britannia trades and markets dairy products, and its dairy portfolio grew at 47% in 2000-01 and by 30% in 2001-02. Britannia holds an equity stake in Dynamix Dairy and had outsourced the bulk of its dairy products from its associate. Its main competitors are Nestle India, and the National Dairy Development Board (NDDB),and amul(GCMMF).
Britannia milkman butter that was launched in july 2000. a premium product with an enhanced 'buttery' taste and flavour, britannia milkman butter is processed using advanced dairy technology. its superior formulation ensures easy spreadability even at a lower temperature, clearly differentiating it from its competitors. a release of the company says that the packaging for britannia milkman butter is truly bright and attractive and the butter is available in two pack sizes: 500gm around rs 65 and 100gm around rs 13.50.
It is available in major towns on a national basis. the brand has a high visibility and is aggressively promoted through mass media. britannia industries limited is the world's second largest bakery products company which made an entry into the dairy sector in 1997 and their current range of quality dairy products include cheese, chocolate and strawberry milk, ghee and dairy whitener. the launch of britannia milkman butter further consolidated the range along with other innovative products in the offing in the near future. some of the other brands besides the one's made by local dairies include, vijaya and verka not forgetting nestle's butter which is being retailed at rs 65 for 500gms and rs 14 for 100gms. so get the butter out of the milk.
BRITANNIA POSITION IN MARKET AND COMPETITORS:
Britannia is the market leader in the organised biscuit and bakery product market in India. Biscuits contribute to more than 80 per cent of Britannia's total turnover. Other products include bread, butter and cakes. Britannia diversified into dairy products in 1997 with processed cheese,dairy whitener and butter. The portfolio was expanded with the launch of butter, pure, flavoured milk in tetrapacks and UHT milk.
The industry is dominated by a large number of players in the unorganised sector, which accounts for over 80 per cent of the market. Britannia Industries and Modern Foods (now owned by HLL) are the only two players with a national presence in packet slice bread segment. There are several other regional players who have significant market shares in their respective local areas. Britannia's bread business has been slowly declining and registered a 9.4 per cent year-on-year volume de-growth last year.
Apart from the much-advertised biscuit business, Britannia's dairy business has been growing at a fast pace on a low base. Volume growth was 50 per cent and value growth was 47 per cent last year. In value terms, the dairy business contributed to 10 per cent of turnover last year.
Prior to the entry of Britannia, the organised market for dairy products like butter and cheese was dominated by the regional milk cooperatives, such as Amul, Vijaya, etc. Imported brands are also freely available in the country today. In the organised domestic segment, Amul remains the dominant player and will continue to be a stiff competitor, given its sourcing advantage and market savviness.
- Media opted for: Television, and Print Media.
- Slogan: "Eat healthy, think healthy
- Theme: BUTTER FOR EVERY ONE
- Push VS Pull: At some stores there is push strategy for the product where as at some stores its pull.
- Promise & Support: BEST BUTTER
- Value Preposition: Best value for money.
- Marketing Strategy Used: Penetration strategy
- Core Benefit: Fulfilment
- Functional Benfit: Makes Energy
IMC is about integrating the customer into the company:
It's not about putting widgets or services in the marketplace based on what you think customers need. Instead, it is becoming a responsive organization driven by consumer insights that knows its customers' wishes, wants, needs and desires and then creating products and services to fill those needs.
IMC argues you need to get to know the customer better than your competitors, and maybe even better than they know themselves.
A true IMC company is closer to the customer, and would never be nervous or ashamed to have one sit in on a strategic marketing meetinga true IMC company has the best interests of its customers in mind.
CURRENT TARGET MARKET FOR BRITANNIA BUTTER:
- Target market approach: 10-50 YEARS
- Product positioning: The product gives a energy with less fat
- Attitudes: Many people are not aware of Britannia butter and they oftenly purchase Amul butter. People always demand butter by the name of Amul.
- Dhabas, Hotels, Restaurents
SWOT Analysis OF bRITANNIA
- Fulfill one of our Basic Requirement among Air, Water, Food, Shelter
- Widely accepted in all Generations
- Easily available in various forms
- Provide good Instant Remedy for hunger in the form of readymade food
- Preserves the non seasonal food and makes it available all throughout the year
- Decreases nutritional value
- Increases the cost of food product
- Industry and technology requires high investment
- Regular usage of processed food can cause alteration in health
- Increase economy of India
- Generate employment opportunity
- Good quality of Goods
- Provide competition to foreign companies
- Improve living standard
- Provide goods to nation at cheaper rate
- Inflow of foreign reserve and funds for the govt.(taxes)
- Many companies are result oriented
- Increase in pollution
- Sometimes provide poor quality of product for more profit
- Lack of technology
- Unable to utilize all the resources efficiently
ADVERTISEMENT STRATEGY FOLLOWED BY BRITANNIA
Before Britannia entered the picture, companies used conventional methods of advertising where the focus was only on the food products and the tone of the pitch was serious. Then they changed the way products were communicated to the people in India. The butter, which had been launched in 1997, had a staid, boring image, primarily because the earlier advertising agency which was in charge of the account preferred to stick to routine, corporate ads.
They are not able to position themselves in the market.
UMBRELLA BRANDING: Britannia's advertising strategy has followed the concept of 'Umbrella Branding.' Britannia is the common brand name for most of its products across categories. Umbrella branding can be a successful marketing strategy. However, this depends on having a consistent and clear brand identity across the variants. It also needs to be recognized that, while this approach can help "kick start variant launches, halo effects are not guaranteed.
Halo effects can keep a brand "alive in the mind of the consumer by providing reminders of the brand's existence. But in an active category with specific category functionality, the brand also needs to provide consumers with reasons to choose their brand over the others.Halo effects on the parent brand
Consumer Advertising: This is also called end product advertising .such advertisements are primarily directed at consumers. These are the advertisements which are most prominent as very substantial portion of the total advertising budget is directed to potential buyers of consumer products through mass media. The fact that the number of buyers of consumer items are generally very large and are widely distributed over a large geographically area further , enhances the importance of consumer advertising as a marketing tool. They should have resorted to consumer advertising as it 's target was the middle class of indian sector but the point to be noted is that they relied more upon emphasizing their brand rather than single product.
Institutional advertising: institution advertising s also called corporate advertising . it's a public-relation-approach advertising. It helps them to build a goodwill for its brand and also it is always expressing a viewpoint on a controversial issue through the use of billboard which we are going to discuss under media platform used.
At present company uses the following modes of advertisement:
- Advertisement on television
- Advertisement in newspapers
- Advertisement in magazines
They are not focusing on radio advertisement and out door.
They should have focused on following marketing strategy:
The market faces continually a new challenge everyday and companies must respond to it positively. Therefore it is not surprising that new market idea keep surfacing to meet new market place challenges.
The market process is applicable to more than goods and services. Anything related to market including ideas, events, policies, prices and personalities comes under market strategy. However it is important to emphasize opportunity in the market through market strategy.
Following strategies should adopted by the organization.
F A strong quality of the product and customer satisfaction:
Customers always believe in good quality product. in my survey I found that in percentage term more people is quality conscious and not price conscious. Customer satisfaction is very important part of the organization that at any cost they have to fulfill.
F A growing relationship with customer and customer retention:
Nowadays a good relation with customer is very important for organization. Sale is totally depending on the relation with the customers. Customer's retention is also a major aspect for growing business. It means keep the old customer and try to make new customer.
F Focus on competitors activity:
Every organization should must be careful about it's competitors step, because they can disturb the growing sales process of the organization.
F A growing emphasis on global thinking and local marketing planning:
Companies are increasing by pursuing market beyond their borders. When they enter other countries they must follow the tradition of that place and also they make plan for local market that which type of product has more demand and how can it run in the market.
F Promotional Strategy
Under the market strategy promotional idea is very important. Organization provides some schemes or rebates to retailers or consumers. They make advertisement according to convenient of the people and the feature of the product.
So on the basis of marketing strategy a organization runs in the market. It is several types of which makes helpful to increase sales and turnover of the organization.
Market potential of the BRITANNIA is much positive in competitive era and will sure cover the maximum market share of butter. Currently Amul holds 80% share of the market. Potentiality of any product depends upon the futuristic performance of the product. it depends that how much retailers have potentiality to be permanent seller of BRITANNIA.
For great potentiality it is necessary to improve those factors which are going to effect retailers. In my study I found some factors which can help to cover great potentiality.
These factors are following:
- Scheme delivery should in perfect determining time.
- Some places distributors not able to cover his particular area. That should be improved.
- Scheme facility should be regular as much as possible.
- Small pack also should be in the market.
- Always collect the views of retailers. It gives psychological effect on the retailers about care ness by manufacturing company.
These factors are very important for the organization. If company is able to improve these all factors then definitely its market share will more increase. Retailers will take more interest to sell Britannia biscuit and customer will also enjoy for it.
So potentiality is very high to Britannia butter in positive direction.
They should have focused on following advertisement objectives:
- To identify and differentiate from other offerings
- To identify and differentiate from other offerings
- To induce consumers to try new products
- To stimulate the distribution of a product
- To build value, brand preference, and loyalty
- To associate feelings with brand
- To link brand with peers and group norms
Importance of IMC
- Reduced faith in mass media advertising
- Increased reliance on highly targeted communication methods
- Greater demands imposed on marketing communications suppliers
- Increased efforts to assess communications' return on investment
- Fragmented media environment
- Changes in media buying practices
- Price conscious consumers
- Contests: "Win another Britannia Butter, "Uncover a secret code underneath the butter pack and win sporting goods and electronics by logging on the website, "Win a ticket for the 2011 World cup in . (Arguments: It will increase consumer purchases and encourage consumer involvement with the product).
- Samples: distributed in supermarkets, school/universities. Samples are a way to avoid product resistance. Arguments: It will encourage new product purchases and it represents low risk for consumers since they get it for free. They have nothing to loose by trying it.
- Point-of-purchase: in supermarkets (to reach the parents of generation Y). Arguments: It is also a mean to increase product trial and provides a good product visibility.
- Allowances and discounts: case allowance (Arguments: The "free goods approach will be used so it can encourage retailers to buy more of the product to get a certain amount for free).
- Cooperative advertising: to encourage retailers to buy product and to maintain high level of advertisement that consumers expect from Britannia.
Objectives of Plan:
Media objectives relate to the goals to be attained by the media program, and as such should be limited to those that can be accomplished through media strategies. Such objectives are often expressed in terms of coverage, reach, frequency, scheduling, etc.
Create awareness in the target market through the following:
- Use broadcast media to provide coverage of 80% of the target market over a six month period
- Reach 60% of the target audience at least three times over the same six month period
- Concentrate heaviest advertising in winter and spring, with lighter emphasis in summer and fall
Company should have to use following IMC:
They should have to use their budget on the broadcast media. Television is the major medium used for the advertisement. Britannia has been playing commercials on the TV since they have launched the Britannia Butter. But their Ads are not covering all the lifestyles of the people. In their ads they have shown many situations....
But following are my suggestions to them
- Friends sitting together
- Child playing
- Families in good modes
- Younger generation in smiling energy form.
In the entire above situation they have showed the importance of the pure butter, when it's about athlete, he is health conscious, when friends sitting together and having fun what they need. The main thing I wanted that people should trust on that Britannia Butter is purest form of butter
Company should have focused on advertising on radio. They play the vocal ads on Fm 100 and 101. Advertising on radio is basically for the people who are on roads.
Below the line includes following mediums of advertisement.
- Direct mail
- Supplementary material
DIRECT MAIL ADVERTISING
It is any form of advertising issued directly to the prospect, whether through the mail, fax, online computer services, salesperson, dealers or other means rather than through traditional mass media.
Britannia send postcards to their home and office persons in the category of retailers and whole sellers. On different occasion company send them different post cards to build long term healthy relationships so that they can contribute in increasing the market share of there product.
Britannia has placed many types of leaflets, which contain information about Britannia Buter pack, at different outlets.
Folders / brochures
Company send brochures of their product to their customers through mail to make them aware of new innovations and products. This helps company in getting more customers.
Company should spend a big share of their advertisement budget on the outdoor advertisement, which includes
- Painted Billboards
- Vinyl Sheets
- Rotary Plan
Company should have placed more than 100 billboards across the roads. They should have put on different skins of them, which are showing different situations in which people are using water.
They should use heavy outdoor advertisement to remind people about the availability of their product because it is a product for which people never pre plan to purchase it so to motivate them for the purchase of Britannia Butter Pack they have to place billboards.
Beside this they have to rotate the skins of their billboards after few months the reason for this is that people loose interest in those skins when they see it for a long time so when they rotate them n place the new one that create the interest among the people.
Transit advertising is a category of out of home media that includes bus and taxicab advertising as well as posters on transit shelters, terminals, and airports.
Types of transit advertising
- Inside cards
- Outside posters
- Terminal posters
- Taxi / bus exteriors
- Terminal posters
They should have placed many attractive and attention getting poster on the terminals and stations in different cities.
They should have also advertising on scroll works, as we know scroll works advertise through mini vans in the city. These van moves throughout the city when people see the scroll work those ads remind them of Britannia Butter Pack during delivery towards the retail outlets and whole sellers.
Skins on Buses
They should pasted their skins on city buses, in this category they are advertising on certain buses.
Internet: Internet is most effective tool for the advertisement of any product. So company should have to use internet for this.
ALLOCATION OF BUDGET:
- On advertisement: 1.50 crore
- On online marketing: 60 lakh
- On van marketing: 40 lakh
- On publicity: 70 lakh
- On personal selling: 40 lakh
- On sponsor ship: 80 lakh
- Sales promotion: 60 lakh
Cost of TV Ad
- Prime Time: 6-11pm
- Channels: Top e.g., Geo, AAJ, PTV
- Cost in Prime Time: Rs. 70,000/min
- Cost in Off-peak time: Rs. 25,000-30,000/min
Cost of Billboard
- Size: 2700 Sq. ft
- Skin: Rs. 54,000
- Rent for 1 month in Cat-A1 area: 600,000-1,000,000
Cost of Hanging Hoardings
- Size: 5ft x 2 ft
- Cost: Rs. 150/hoarding
- Rent in Cat-A1: 1,350/week
Cost of Poster
- Paper weight: 135 gram
- Size: 18inch x 23inch
- Quantity: 3000 @ Rs. 4.15/poster
The relative cost is about the one town like Phagwara.
The evaluation of the campaign will be based on how well we reach our target market and achieve our communication objectives. First, we will be analyzing consumer response to the advertisements on the various media. Simply stated, we want to see if our ads are effective enough to catch our target market's attention and interest.
Second, we will be evaluating customer experience with our product. For this we plan to do surveys and the telephonic interviews and to measure the response of our all efforts that we have put in the whole process and in this way we can evaluate the result of our all activities.
In this way, we can achieve a better understanding of the effectiveness of the both the advertising and the product itself.
After going thick on the thing, now time is to make a complete picture. While making a product a SKU (Stock Keeping Unit) of the shop retailers think about the GMROI (Gross Margin Return On Investment) and they promote the brand which provide them highest. They expect return in the form of profit margin, company schemes, window display and references of the shop. Among these, company schemes make the differences and are the highest source of motivation after profit margin. Retailing demands a constant push from the company.
Marketer needs to use advertising and brand building strategies to address the discerning buyers and retail push to in different buyers. The manufacturer should understand consumer behavior because retailers can't help quality and price. It is only up to dealers said it is demand they sell Britannia 42% agree that at retail shop it is brand popularity, which determine the purchase of butter.
There is a greater need to understand the retailer behavior considering them as a team working for the company may help them to be attached to the company. There should be feeling of belonging to the company in inner of the retailers. Setting values club for retailers so that they may exchange views with the company and help in understanding consumer behavior.
- Advertising & Promotions(kruti shah,alan d'souza)