Final Presentation New

MARKETINGMARKETING STRATEGY STRATEGY

-PROF. O.T.S NAMBIAR

““DESCRIBE THE DESCRIBE THE ELEPHANT”ELEPHANT”

MARKETING STRATEGYMARKETING STRATEGY

Marketing strategy is a process that can allow an organization to concentrate its limited resources on the greatest opportunities to increase sales and achieve a Sustainable competitiveadvantage . A marketing strategy should be centered around the key concept that customer satisfaction is the main goal.

http://en.wikipedia.org/wiki/Competitive_advantage

http://en.wikipedia.org/wiki/Competitive_advantage

http://en.wikipedia.org/wiki/Customer_satisfaction

APPLEAPPLE

NIKENIKE

AMERICAN EXPRESS-AMERICAN EXPRESS-“DON’T LEAVE HOME “DON’T LEAVE HOME

WITHOUT IT”WITHOUT IT”

AVISAVIS

CALIFORNIA MILK CALIFORNIA MILK PROCESSOR BOARDPROCESSOR BOARD

There Are Some Things Money Can't Buy. For

Everything Else, There's MasterCard.

U.S MARINES--THE FEW .THE U.S MARINES--THE FEW .THE PROUDPROUD

MC-DONALDSMC-DONALDS

SALES MARKETINGSALES MARKETING

INTERNET MARKETINGINTERNET MARKETING

Welcome to the exciting world of marketing

The Back Drop

Where is Ambassador car now? Brylcream has vanished (and reappeared)? Jawa Byke skidded? Metal Box the blue chip co collapsed? BSNL finds itself in the midst of hectic

competition? Where is Garden Vareily sarees? Kellog struggles, but Maggie smiles.Why?

HMT vs Titan

Dell zoomed ahead Radio FM has picked up momentum

fm nowhere Promise fm balsara, a small co had a

good start.USP of Clove , association with grandma

Yesterday..............Today

Jawa/Yezdi motor cycle

Indian Coffee house

Binny Fabrics Kores

Photocopier

Hero Honda,TVS Coffee day,

Barista

Raymonds Modi Xerox

Brand is an expression of your Personality....top brands

Coca cola Pepsi Microsoft IBM GE

Intel Disney Ford Mc Donald AT&T

Celebrity Ads

Amitabh Bachan...ICICI,PEPSI,Reid&Taylor,Hajmola,Dabur Chyvanaprash,Parker

SRK..Santro Abhishek..Idea Hema Malini.Water

filter

Snny Deol...tractor

Akshay Kumar...genes

Film stars(beauty platform)...Lux

Sachin.boost Imran

Khan.cinthol

Brand perception..country correlation?

UK.class ,heritage

France..fashion germany..sturdy,

qlty,reliability Switzerland..wat

ches

India..spices,cashew

Brand Associations

Van Heusen..aspirational,inner confidence, stylishand sophisticated

Saffola...association with health has created a memorable association in the psyche of consumers

Ad:Find a new gove,Dance to a new beat,Be bold.

Maggie..covenience platform,USP

Brand Associations

Fair&Lovely..positioned in the fairness platform ,now at marrid women

Cadburys...for children, now at adults(change in the imagery...Bachan taking chocolate along with diff people..togetherness ...for adults

Reynolds...reliability,though high priced

scooty...tgt.young, upwardly mobile working girls

Brand feelings

Warmth,pride.Complan..pride of mother when child carrying moher in cycle.

Warmth..Johnsons baby powder

Fun..cola excitement..byke

ads

Socialappeal ..Ford car for the upcoming professional

positioning

Titan's Nebula jeweellery watches

Fastrack fm titans.for the fashionable

Dash for children fm titans

LG air conditioners ..pure air

Product line extns..rasna with variants

Johnsons extendin to baby soaps, powders

Liril to powders Nirma det to

toilet soaps?

Brand attributes and benefits

lifebuoy.germ killing action ia the a, hygiene is the b

Samsung tv.extra space view is the a enlarged clear tv view is the b

Vguard.quality,tech is the a, relibility is the b

ICICI.technology is the a , convenience is the b

Cinthol.deodorent qlty is the a, hygiene, socilisng is the b

Some stray thoughts

Relationship management...dog

Why kellog failed,when maggie won..cold milk is the cobination for corn flakes ,why hot milk here?

I make cream in the factory , sell hope in the shop

Ford ..refused to give what consumer wanted..failed

Culture plays ..subtly

bru..taste of filter coffee(why venket)

margo.remembering hr childhood, mother's advice on neem

MTR..traditional recipes for modern busy consumer in covenient, hygine form

vicco..brides to be complexion traditional tumeric

Gorej Almirah wedding gift

Asian paints..festivals like Pongal

Charms and close up

Heralding the arrival of a new youth culture

Life Buoy...family soap Big small functional

attribute.Johns Umbrella succeeded

Lubricant..we sell more by selling less

vicks...emotional bond between mother and son.

Matiz failed..big and small confusion

Maruti van ,,,spacious car ,family car ,affection,family ties revived it.

March 12, 2000 Private & Confidential 29

What is Marketing…??

Selling?

Advertising?

Promotions?

Making products available in stores?

Maintaining inventories?

All of the above, plus much more!


Marketing = ?

Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services to create exchanges that satisfy individual and organizational goals

American Marketing Association


Marketing = ?

Marketing management is the art and science of choosing target markets and getting, keeping, and growing customers through creating, delivering, and communicating superior customer value.


Simple Marketing System

Industry(a collection

of sellers)

Market(a collection

of Buyers)

Goods/services

Money

Communication

Information


Marketing = ? Marketing is the sum of all activities that take you to a

sales outlet. After that sales takes over. Marketing is all about creating a pull, sales is all about

push. Marketing is all about managing the four P’s –

product price place promotion


The 4 Ps & 4Cs

MarketingMix

Product

Price Promotion

Place

CustomerSolution

CustomerCost

Communication

Convenience


Difference Between - Sales & Marketing ?

Salestrying to get the customer to want what the company produces

Marketing trying to get the company produce what the customer wants


Scope – What do we market

Goods Services Events Experiences Personalities Place Organizations Properties Information Ideas and concepts


Core Concepts of Marketing

Based on : Needs, Wants, Desires / demand

Products, Utility, Value & Satisfaction

Exchange, Transactions & Relationships

Markets, Marketing & Marketers.


Needs, wantsdemands

Markets Marketing &Marketers

Utility, Value &Satisfaction

Xchange, TransactionRelationships

Products




Need – food ( is a must )

Want – Pizza, Burger, French fry's ( translation of a need as per our experience )

Demand – Burger ( translation of a want as per our willingness and ability to buy )

Desire – Have a Burger in a five star hotel


In order to understand Marketing let us begin with the Marketing Triangle

Customers

CompetitionCompany


Who is a Customer ??

Anyone who is in the market looking at a product /

service for attention, acquisition, use or consumption

that satisfies a want or a need

CUSTOMER IS . . . . .


Customer –

CUSTOMER has needs, wants, demands and desires

Understanding these needs is starting point of the entire marketing

These needs, wants …… arise within a framework or an ecosystem

Understanding both the needs and the ecosystem is the starting point of a long term relationship


How Do Consumers Choose Among Products & Services?

Value - the value or benefits the customers gain from using the product versus the cost of obtaining the product.

Satisfaction - Based on a comparison of performance and expectations.

Performance > Expectations => Satisfaction

Performance < Expectations => Dissatisfaction


Customers - Problem Solution

As a priority , we must bring to our customers “WHAT THEY NEED”

We must be in a position to UNDERSTAND their problems

Or in a new situation to give them a chance to AVOID the problems


Customer looks for Value

Value = Benefit / Cost

Benefit = Functional Benefit + Emotional Benefit

Cost = Monetary Cost + Time Cost + Energy Cost + Psychic Cost


Analysis Of Competition

Who are your competitors?

What are their strengths and weaknesses?

What have been their strategies?

How are they likely to respond to your Marketing plan?


Strategic Marketing

Strategic marketing management is concerned with how we will create value for the customer

Asks two main questions

What is the organization’s main activity at a particular time? – Customer Value

What are its primary goals and how will these be achieved? – how will this value be delivered


Strategic Planning

Strategic Planning is the managerial process of creating and maintaining a fit between the organization’s objectives and resources and the evolving market opportunities.

Also called Strategic Management Process

All organizations have this

Can be Formal or Informal


The Strategic-Planning, Implementation, and Control Process


Business Strategic-Planning Process

External environment

(Opportunity &

Threat analysis)

Internal Environment

(Strength/ Weakness analysis)

Goal FormulationBusiness Mission


Strategy Formulation

Environmental Analysis

Internal AnalysisCompetitorCustomerSupplier

RegulatorySocial/ Political

Technology Know-HowManufacturing Know-How

Marketing Know-HowDistribution Know-How

Logistics

Strength & Weaknesses

Identity Core Competencies

Opportunities & Threats

Identify opportunity

Fit internal Competencies with external opportunities

Firm Strategies


The Marketing Plan

A written document that acts as a guidebook of marketing activities for the marketing manager


CONTENTS of MARKETING PLAN Business Mission Statement

Objectives

Situation Analysis (SWOT)

Marketing Strategy

Target Market Strategy

Marketing Mix Positioning

Product

Promotion

Price

Place – Distribution

People

Process

Implementation, Evaluation and Control


The Marketing Process

Business Mission Stateme

nt

Objectives

Situation or SWOT Analysis

Implementation Evaluation,

Control

Target Market Strategy

Marketing Strategy

Product

Promotion

Place/Distribution

Price

Marketing Mix

Marketing Environment


Why a product like radio declined and now once again

emerging as an entertainment medium ?


What Were the Drivers of This Change ?

Technology ?

Government policy ?

Other media substitutes ?


Why Market Leaders Suffered ?

HMT vs. Titan

HLL vs. Nirma

Bajaj vs. Honda

Dot.com boom, then bust and now resurgence

Market leadership today cannot be taken for granted.New and more efficient companies are able to upstage leaders in a much shorter period.


Factors Influencing Company’s Marketing Strategy


DemographicsDemographics

SocialChangeSocial

Change

EconomicConditionsEconomicConditions

Political & Legal FactorsPolitical &

Legal Factors

TechnologyTechnology

CompetitionCompetition

EnvironmentalScanning

Target Market

ProductDistributionPromotion

Price

ProductDistributionPromotion

Price

External Environment is not controllable Ever-Changing

Marketplace

External Marketing Environment

Physical / Natural


The macro-environment

is the assessment of the external forces that act upon the firm and its customers, that create threats & opportunities


P r o d u c tP r o d u c t


Anything that is offered to the market for

attention, acquisition, use or consumption that

satisfies a want or a need

Product is . . . . .


Types of Products

ConsumerProducts

IndustrialProducts

PRODUCTS

Services


Product Items, Lines, and Mixes

Product ItemProduct Item

Product LineProduct Line

Product MixProduct Mix

A specific version of a product that can be designated as a distinct offering among an organization’s products.

A specific version of a product that can be designated as a distinct offering among an organization’s products.

A group of closely-related product items.

A group of closely-related product items.

All products that an organization sells.

All products that an organization sells.


Product Mix

Width – how many product lines a company has

Length – how many products are there in a product line

Depth – how many variants of each product exist within a product line

Consistency – how closely related the product lines are in end use


Gillette’s Product Lines & Mix

Blades and Writingrazors Toiletries instruments Lighters

Fusion – 5 bladeMach 3 TurboMach 3 Series Paper Mate CricketSensor Adorn Flair S.T. Dupont Trac II Toni S.T. DupontAtra Right GuardSwivel Silkience Double-Edge Soft and Dri Lady Gillette Foamy Super Speed Dry LookTwin Injector Dry Idea Techmatic Brush Plus

Width of the product mixWidth of the product mixDep

th o

f the p

rod

uc

t lines

Dep

th o

f the p

rod

uc

t lines


What is a Service? Defining the Essence

An act or performance offered by one party to another (performances are intangible, but may involve use of physical products)

An economic activity that does not result in ownership

A process that creates benefits by facilitating a desired change in customers themselves, or their physical possessions, or intangible assets


Some Industries - Service Sector

Banking, stock broking

Lodging

Restaurants, bars, catering

Insurance

News and entertainment

Transportation (freight and passenger)

Health care

Education

Wholesaling and retailing

Laundries, dry-cleaning

Repair and maintenance

Professional (e.g., law, architecture, consulting)


Classification of Services

Pure Tangible Product

Materials / Components

Computers

Major Product withMinor Services

Product = Service

Major Service withMinor Product

Business Hotels

Good Transportation

Banking Pure Intangible Service


Intangibility – Services are intangibility cannot be seen, tasted, felt, heard or smelled before purchase.

Inseparability - Services are produced and consumed simultaneously.

Variability or Heterogeneity – Services are highly variable

Perishability – Services cannot be stored.

Non Ownership - Services are rendered but there is no transfer of title

Major Characteristic of Services


The Marketing Mix

The conventional view of the marketing mix consisted of four components (4 Ps): Product, Price, Place/ distribution and Promotion.

Generally acknowledged that this is too narrow today; now includes , Processes, Productivity [technology ]People [employees], Physical evidence

Marketers today are focused on virtually all aspects of the firm’s operations that have the potential to affect the relationship with customers.


The “8Ps” of Integrated Service Management vs. the Traditional “4Ps”

► Product elements

► Place, cyberspace, and time

► Process

► Productivity and quality

► People

► Promotion and education

► Physical evidence

► Price and other user outlays


The Give and Get of Marketing


Great Words on Marketing

1. “The purpose of a company is ‘to create a customer…The only profit center is the customer.’”

2. “A business has two—and only two—basic functions: marketing and innovation. Marketing and innovation produce results: all the rest are costs.”

3. “The aim of marketing is to make selling unnecessary.”

4. “While great devices are invented in the Laboratory, great products are invented in the Marketing department.”

5. “Marketing is too important to be left to the marketing department.”


Drivers of Customer Satisfaction

Many aspects of the firm’s value proposition contribute to customer satisfaction:

The core product or service offered

Support services and systems

The technical performance of the firm

Interaction with the firm and it employees

The emotional connection with customers

Ability to add value and to differentiate as a firm focuses more on the top levels


Marketers and MarketsMarketers are focused on stimulating

exchanges with customers who make up markets – B2C or B2B.

The market is comprised of people who play a series of roles: decision makers, consumers, purchasers, and influencers.

It is absolutely essential that marketers have a detailed understanding of consumers, their needs and wants.

Much happens before and after the sale to affect customer satisfaction


Stages of Customer Interaction


What Changed in Marketing…

• Organize by product units• Focus on profitable transactions• Look primarily at financial

scorecard• Focus on shareholders• Marketing does the marketing• Build brands through advertising• Focus on customer acquisition• No customer satisfaction

measurement• Over-promise, under-deliver

• Organize by customer segments• Focus on customer lifetime value• Look also at marketing scorecard

• Focus on stakeholders• Everyone does the marketing• Build brands through performance• Focus on customer retention• Measure customer satisfaction and

retention rate• Under-promise, over-deliver

Old Economy New Economy


Are Banks truly Are Banks truly marketing-savvy and marketing-savvy and customer - centric?customer - centric?


Myth 1 – The larger the range of products, the more customer-centric I am.

Mythbuster – The range of products has Mythbuster – The range of products has

emerged from beingemerged from being

competition-centric.competition-centric.


Myth 2 – Better technology (read CRM) leads to

better customer service.

Mythbuster – TechnologyMythbuster – Technology

alone does not deliver, alone does not deliver,

helps people do.helps people do.


Myth 3 – Launch a product and the customer will start

using instantly.- Give a customer a card and he will learn how to play

with it immediately

Mythbuster – Customers needMythbuster – Customers need

To be educated too…To be educated too…


Mythbuster – Customers are Mythbuster – Customers are not only present where not only present where competition is.competition is.

Myth 4 – The only way to get a customer is from

competition.


Myth 5 – Just advertise and - You will sell.

Mythbuster – Advertising will only sell, Mythbuster – Advertising will only sell,

Not retain customers. Not retain customers.


Myth 6 – No difference between marketing & selling

Mythbuster – Mythbuster – “Selling focuses on the needs of the seller; “Selling focuses on the needs of the seller; marketing on the needs of the buyer. marketing on the needs of the buyer.


Myth 7 – In the absence of relationships ‘trust’ builds financial brands

Mythbuster – TMythbuster – Trust is not a differentiator at all…rust is not a differentiator at all…it is the very minimum that the customer expects!!it is the very minimum that the customer expects!!


So what will the differentiators be :So what will the differentiators be :

• Technology ?

• Brand ?


The real differentiator of The real differentiator of

customer – centricity in a customer – centricity in a

commoditised world of commoditised world of

financial products - financial products -

Customer Service !Customer Service !

Chapter 12: Channels and Distribution Strategies

Learning Objectives:

• Understand the channel structure and the linkages between the buyer and the seller

• The Channel Design (11 C’s)

• Selection of Intermediaries

• Channel Management

• International Shipment

- Documentation

- Support Agencies for international shipment

http://www.uww.edu/

• Importance of Distribution Channels

• Channels configurations

- Consumer goods- Industrial goods- Services

• In international distribution, The firm sells to it’s customers - Through its own sales force- Through independent intermediaries- Through an outside distribution system with regional/global coverage

• Channels structure should be designed to manage

- Physical flow of goods and services- Transactional flows- Information flows

http://www.uww.edu/

• Channels Design

- Customer Characteristics- Distribution culture- Competition- Company objectives (for market share and profitability)- Character (nature of product, positioning of the product)- Capital (financial requirement)- Cost (cost incurred in maintaining the channel)- Coverage (intensive, selective, exclusive distributions)- Control (product/service presentations, quality, image)- Continuity

- Communication

http://www.uww.edu/

• The concept of channel captain and power

- Reward

- Coercive

- Legitimate

- Referent

- Expert

• Type of “Distance” that cause communication problem

- Social Distance

- Culture Distance

- Technological Distance

- Time Distance

- Geographical Distance

http://www.uww.edu/

• Selection of Intermediaries Agent

Foreign (Direct) - Brokers- Manufacturer’s Representative- Factors- Managing Agents- Purchasing Agents

Domestic (Indirect)- Brokers- Export Agent- EMCs- Webb-Performance Association- Commission Agents

http://www.uww.edu/

Distribution

Foreign (Direct)

- Distribution/Dealers- Import Jobbers- Wholesalers/retailer

Domestic (Indirect)

- Domestic wholesalers - EMCs- ETCs- Complementary marketers

Types of Distributors

- Indirect Exporting- Direct Exporting- Integrated Distribution

http://www.uww.edu/

• Sources for finding Intermediaries

- Govt. Agency

- Private Sources

• Criteria for Screening Intermediaries

- Performance- Professionalism

• Distributors agreement includes

- Contract duration

- Geographic boundaries- Compensation- Products and conditions of sale

- Communication between parties

http://www.uww.edu/

• Channel management - Coordination- Long term relationship

• Factor in channel management - Ownership- Geographic, culture and economic distance- Difference in rules of law

• Gray Market (Parallel Imports)

- Why Gray markets occur- How to handle Gray markets

• Typical reasons for termination of channel relationship

- Change in international marketer’s distribution strategy

- Lack of performance by the intermediary- Make the terminators conditions explicit in the agreement

http://www.uww.edu/

Documents Required for International Shipments

- Shipper export declaration• Documents required by U.S Government

- Export license• Commercial Documents

- Packing list- Commercial Invoice

- Inland bill of lading- Dock receipt- Bill of lading- Insurance Certificate- Shipper’s declaration of dangerous goods

• Import Documents- Import license- Foreign exchange license- Certificate of Origin- Consular Invoice- Customs Invoice

http://www.uww.edu/

• Support Agencies for International Shipments

- Freight forwarder- Customs broker- Common carrier

http://www.uww.edu/

The Marketing Mix

The Marketing Mix

• The tools available to a business to gain the reaction it is seeking from its target market in relation to its marketing objectives

• 7Ps – Price, Product, Promotion, Place, People, Process, Physical Environment

• Traditional 4Ps extended to encompass growth of service industry

Price

• Pricing Strategy• Importance of:

– knowing the market

– elasticity– keeping an eye

on rivals

Image copyright: www.freeimages.co.uk

Pricing Strategies

Penetration Pricing

Penetration Pricing

• Price set to ‘penetrate the market’• ‘Low’ price to secure high volumes• Typical in mass market products –

chocolate bars, food stuffs, household goods, etc.

• Suitable for products with long anticipated life cycles

• May be useful if launching into a new market

Market Skimming

Market Skimming

• High price, Low volumes• Skim the profit from the

market• Suitable for products that

have short life cycles or which will face competition at some point in the future (e.g. after a patent runs out)

• Examples include: Playstation, jewellery, digital technology, new DVDs, etc.

Many are predicting a firesale in laptops as supply exceeds demand.Copyright: iStock.com

Value Pricing

Value Pricing

• Price set in accordance with customer perceptions about the value of the product/service

• Examples include status products/exclusive products

Companies may be able to set prices according to perceived value.

Copyright: iStock.com

Loss Leader

Loss Leader

• Goods/services deliberately sold below cost to encourage sales elsewhere

• Typical in supermarkets, e.g. at Christmas, selling bottles of gin at £3 in the hope that people will be attracted to the store and buy other things

• Purchases of other items more than covers ‘loss’ on item sold

• e.g. ‘Free’ mobile phone when taking on contract package

Psychological Pricing

Psychological Pricing

• Used to play on consumer perceptions

• Classic example - £9.99 instead of £10.99!

• Links with value pricing – high value goods priced according to what consumers THINK should be the price

Going Rate (Price Leadership)

Going Rate (Price Leadership)

• In case of price leader, rivals have difficulty in competing on price – too high and they lose market share, too low and the price leader would match price and force smaller rival out of market

• May follow pricing leads of rivals especially where those rivals have a clear dominance of market share

• Where competition is limited, ‘going rate’ pricing may be applicable – banks, petrol, supermarkets, electrical goods – find very similar prices in all outlets

Tender Pricing

Tender Pricing• Many contracts awarded on a tender basis• Firm (or firms) submit their price for carrying

out the work• Purchaser then chooses which represents best

value• Mostly done in secret

Price Discrimination

Price Discrimination

• Charging a different price for the same good/service in different markets

• Requires each market to be impenetrable

• Requires different price elasticity of demand in each market

Prices for rail travel differ for the same journey at different times of the day

Copyright: iStock.com

Destroyer Pricing/Predatory Pricing

Destroyer/Predatory Pricing

• Deliberate price cutting or offer of ‘free gifts/products’ to force rivals (normally smaller and weaker) out of business or prevent new entrants

• Anti-competitive and illegal if it can be proved

Absorption/Full Cost Pricing

Absorption/Full Cost Pricing

• Full Cost Pricing – attempting to set price to cover both fixed and variable costs

• Absorption Cost Pricing – Price set to ‘absorb’ some of the fixed costs of production

Marginal Cost Pricing

Marginal Cost Pricing

• Marginal cost – the cost of producing ONE extra or ONE fewer item of production

• MC pricing – allows flexibility • Particularly relevant in transport where fixed

costs may be relatively high• Allows variable pricing structure – e.g. on a

flight from London to New York – providing the cost of the extra passenger is covered, the price could be varied a good deal to attract customers and fill the aircraft

Marginal Cost Pricing• Example:

Aircraft flying from Bristol to Edinburgh – Total Cost (including normal profit) = £15,000 of which £13,000 is fixed cost*

Number of seats = 160, average price = £93.75

MC of each passenger = 2000/160 = £12.50

If flight not full, better to offer passengers chance of flying at £12.50 and fill the seat than not fill it at all! *All figures are estimates only

Contribution Pricing

Contribution Pricing

• Contribution = Selling Price – Variable (direct costs)

• Prices set to ensure coverage of variable costs and a ‘contribution’ to the fixed costs

• Similar in principle to marginal cost pricing

• Break-even analysis might be useful in such circumstances

Target Pricing

Target Pricing

• Setting price to ‘target’ a specified profit level

• Estimates of the cost and potential revenue at different prices, and thus the break-even have to be made, to determine the mark-up

• Mark-up = Profit/Cost x 100

Cost-Plus Pricing

Cost-Plus Pricing

• Calculation of the average cost (AC) plus a mark up

• AC = Total Cost/Output

Influence of Elasticity


• Any pricing decision must be mindful of the impact of price elasticity

• The degree of price elasticity impacts on the level of sales and hence revenue

• Elasticity focuses on proportionate (percentage) changes

• PED = % Change in Quantity demanded/% Change in Price


• Price Inelastic:• % change in Q < % change in P• e.g. a 5% increase in price would be

met by a fall in sales of something less than 5%

• Revenue would rise• A 7% reduction in price would lead to a

rise in sales of something less than 7%• Revenue would fall


• Price Elastic:• % change in quantity demanded > %

change in price• e.g. A 4% rise in price would lead to sales

falling by something more than 4%• Revenue would fall• A 9% fall in price would lead to a rise in

sales of something more than 9%• Revenue would rise

Product

Product• Methods used to

improve/differentiate the product and increase sales or target sales more effectively to gain a competitive advantage e.g.– Extension strategies– Specialised versions– New editions– Improvements – real or

otherwise!– Changed packaging– Technology, etc.

Image copyright: www.freeimages.co.uk

Promotion

Promotion

• Strategies to make the consumer aware of the existence of a product or service

• NOT just advertising

Place

• The means by which products and services get from producer to consumer and where they can be accessed by the consumer– The more places to buy the product

and the easier it is made to buy it, the better for the business (and the consumer?)

People

People

• People represent the business– The image they present can be important– First contact often human – what is the lasting

image they provide to the customer?– Extent of training and knowledge

of the product/service concerned– Mission statement – how relevant?– Do staff represent the desired culture

of the business?

Process

Process• How do people consume services?• What processes do they have to go through to

acquire the services?• Where do they find the availability

of the service?– Contact– Reminders– Registration– Subscription– Form filling– Degree of technology

Physical Environment

Physical Environment

• The ambience, mood or physical presentation of the environment– Smart/shabby?– Trendy/retro/modern/old fashioned?– Light/dark/bright/subdued?– Romantic/chic/loud?– Clean/dirty/unkempt/neat?– Music?– Smell?

Sales Promotion

Whereas advertising gives a reason to buy, SP gives an incentive to buy

It is part of the Marketing spend of all companies and these days SP

spends in many companies exceed that of the adspends

Why?

• Internal• External

Internal reasons

• Top management is more conducive to spending on promotions

• Line managers under greater pressure to achieve targets

• Justification of expenditure is easy

External reasons

• Increase in number of brands• Consumer is more price savvy• Greater pressure from trade to

liquidate stocks• Add effectiveness declining owing

to rising costs, media clutter and legal constraints

SP is a push strategy

• Since it is at the last point where the consumer is often at the point of buying, the additional incentive makes a last ditch effort to convert the customer on to the incentivised brand

SP is of two types

• Trade• Consumer

Trade promotion

• Liquidating heavy inventories• Persuade retailers to carry stock,

carry more than usual stock, promote brand franchise

Consumer promotion

• Stimulate purchase• Induce trial• Create new users• Increase repurchase from

occasional customers• Reward loyal customers

Forms of trade promotion

• Bulk discounts• Free materials• Display windows• Shelf hiring• Lucky draws• ‘Mystery’ customer• Redistribution incentives• Shop salesmen incentives

Forms of consumer promotion

• Free samples• Free gifts• Coupons• In-packs• Price packs• Price-offs• Sweepstakes• Bundling offers

SP spurs action because they are supposed to run for a limited time

While the advertising budgets are controlled by the brand

managers, SP budgets usually are controlled by the

sales managers

The more the product’s quality and its advertising persuasiveness fail to meet competition, the greater is the need for promotion to improve the price – value relationship

Promotion at different stages of the PLC

• Introduction – wise to use heavy promotion to induce trials and promote brand franchise

• Growth – promotion should be limited ,if any• Maturity – Higher promotions required since the

brand is under attack from competitors or product quality or advertising effectiveness is tapering off

• Decline – Heavy promotions. Used only to retain a set of loyal customers. Prior to withdrawal of the product, it could be used as a one time stock clearance from the trade

Essential elements for an effective SP programme

• Significant value before promotion is effective• Promotions must be part of an overall plan

• Every brand must have a promotion objective and a strategy statement

• A written tactical plan – time frame, costs, evaluation yardsticks

• Factual knowledge must be gathered to plan

• Specialised professional skill and knowledge must be applied to every promotion operations

Final considerations

• Don’t promote if the product is not good• Promotions rarely stop a declining sales curve• It is very easy to lose the promotional gains made if your

promotion has not been effective in retaining new customers. So the product has to speak for itself.

• The objective of the promotion is to wean away users from competition and create new users.

• Excessive promotions lead to diminishing returns and may devalue the brand

Cont’d

• Promotions may be used in conjunction with advertising and other marketing communication tools

• It should be novel and attractive• Ensure supply lines are good and adequate

stock is available right through the promotion• Cater for contingencies. Have escape routes

built into the plan• Trade has to be handled tactfully• Reimburse incentives/ rewards/ gifts promptly• Must be within the legal boundaries

The Marketing Mix• Blend of the mix depends upon:• Marketing objectives• Type of product• Target market• Market structure• Rivals’ behaviour• Global issues – culture/religion, etc.• Marketing position• Product portfolio

– Product lifecycle– Boston Matrix

1. Imperatives for Market-Driven Strategy

2. Markets and Competitive Space

3. Strategic Market Segmentation

4. Strategic Customer Relationship Management

5. Capabilities for Learning about Customers and Markets

6. Market Targeting and Strategic Positioning

7. Strategic Relationships

8. Innovation and New Product Strategy

9. Strategic Brand Management

10. Value Chain Strategy

11. Pricing Strategy

12. Promotion, Advertising and Sales Promotion

Strategies

13. Sales Force, Internet, and Direct Marketing Strategies

14. Designing Market-Driven Organizations

15. Marketing Strategy Implementation And Control

Strategic Marketing

CHAPTER 12

Promotion, Advertising, and Sales Promotion Strategies

Promotion Strategy

Advertising Strategy

Sales Promotion Strategy

McGraw-Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved.

PROMOTION STRATEGY

The Composition of Promotion Strategy

Developing Promotion Strategy

Communications Objectives

Deciding the Role of the Promotion Components

Determining the Promotion Budget

Promotion Component Strategies

Integrating and Implementing the Promotion Strategy

Effectiveness of Promotion Strategy

Promotion Strategy:Promotion Strategy:

planning, implementing, andplanning, implementing, and

controlling an organization’scontrolling an organization’s

communications to its customers communications to its customers

And other target audiences.And other target audiences.

PromotionComponents

PublicRelations

DirectMarketing

SalesPromotion

PersonalSelling

Advertising

Interactive/Internet Marketing

Composition of Promotion Strategy

U. S. Annual Expenditures (billions)

0

$200

$400

$600

Personal Selling

Advertising

Sales Promotion

INTERNET FEATURE

Brand Advertising On-Line Has Taken Off

SEARCH WORKSGoogle and Yahoo! Have demonstrated the power of the Web by using customers’ search queries to connect them with advertisers.CUSTOMERS ARE ONLINEMore than half of American households have always-on Net connections. And the Web reaches millions at the office. The Big Three portals—Yahoo, AOL, and MSN—reach a combined 50 million a day–-twice the TV audience of a World Series game.VIDEO ROCKSThe adoption of broadband, which can handle videos, lets advertisers put TV-like ads online. Longer spots by BMW and Adidas have reached cult status. As demand for video soars, portals sell choice slots in advance, much like TV’s up-front sales.FEEDBACK IS INSTANTMarketers and online publishers have tools to track an ad’s performance in real time allowing them to make quick adjustments if customers aren’t clicking. This turns the Net into a vast marketing lab. And as video grows, it becomes a test bed for TV ads.CUSTOMERS LEAVE TRAILSIt was an empty promise during the dot-com days, but now advertisers have the technology to follow customers, click by click, and to hit them with relevant ads. The upshot? No wasted money peddling dog food to cat owners.

Source: Stephen Baker, “The On-Line Ad Surge,” BusinessWeek, November 22, 2004, 79.

COMMUNICATIONOBJECTIVES

ROLE OF PROMOTIONCOMPONENTS

PROMOTIONBUDGET

PROMOTION COMPONENTSTRATEGIES

Coordinationwith Product,Distribution,and PriceStrategies

DESIGNING THE PROMOTION STRATEGY

Advertising Sales Promotion Public Relations Personal Selling Direct Marketing Interactive/ Internet Marketing

MARKET TARGETING AND POSITIONING STRATEGIES

INTEGRATE AND IMPLEMENT PROMOTION COMPONENT STRATEGIES

EVALUATE EFFECTIVENESS OF PROMOTION STRATEGY

Illustrative Communications Objectives

Need Recognition

Finding Buyers

Brand Building

Evaluation of Alternatives

Decision to Purchase

Customer Retention

Deciding the Role of the Promotion Components

Expected contribution for each of the promotion components.

Which communication objective(s) will be the responsibility of each component?

What part of the budget will go to each component?

Factors Guiding the Role Assigned to Each Component

Market Target(s)

Desired Positioning

Role of Promotion in Positioning

Product Characteristics

Stage of Life Cycle

Situation Specific Factors

Determining the Promotion Budget

Percent of Sales

Follow the Competition

Objective and Task

All You Can Afford Budgeting Approaches

Percent of Sales Fixed percent of sales, often based on past

expenditure patterns.

Comparative Parity Budget is based largely

upon what competition is doing.

Objective and Task Set objectives and then determine tasks

(and costs) necessary to meet the objectives.

Percent of Sales The method is very arbitrary. Budget may be

too high when sales are high and too low when sales are low.

Comparative Parity Differences in marketing strategy may require

different budget levels.

Objective and Task The major issue in using this method is

deciding the right objectives so measurement of results is important.

Features Limitations

Budgeting Methods

Integrating and Implementing Promotion Strategy

Avoiding fragmentation

Difficulty in evaluating productivity

Differences in priorities

Separate organizational units

Assigning integration responsibility

Illustrative Factors Affecting Promotion Strategy

Number and dispersion of buyers

Buyers’ information needs

Size and importance of purchase

Distribution

Product Complexity

Post-purchase contact required

Small

High

Large

Direct

High

Yes

Large

Low

Small

Channel

Low

No

Advertising/ sales promotion driven

Balanced Personal selling driven

Promotion Strategy Issues

Expense/Response Relationships

Allocation

Impact on Brand Equity

Integration of Promotion Components

Effectiveness of the Strategy

ADVERTISING STRATEGY

Setting Objectives and Budgeting

Creative Strategy

Media/Scheduling Decisions

Role of the Advertising Agency

Program Implementation and Measuring Effectiveness

The Internet is Shifting the Power The Internet is Shifting the Power Position to the CustomerPosition to the Customer

• How the Money is Spent is Changing.How the Money is Spent is Changing.• The Amount Spent on Internet Advertising is a The Amount Spent on Internet Advertising is a

Small Fraction of the Total, but Very Powerful and Small Fraction of the Total, but Very Powerful and Growth is Accelerating.Growth is Accelerating.

• Consumers Spend 10 hrs/person/day with Media Consumers Spend 10 hrs/person/day with Media of all Kindsof all Kinds—How Much is Media Multi-Tasking?—How Much is Media Multi-Tasking?

• Ad Spending Versus Consumers’ Time Allocations.Ad Spending Versus Consumers’ Time Allocations.• Advertising Agency Consolidation and Advertising Agency Consolidation and

Reorganization—the Big 4.Reorganization—the Big 4.• Do Companies Recognize the Revolutionary Do Companies Recognize the Revolutionary

Implications of Newly Empowered Consumers?Implications of Newly Empowered Consumers?• The Internet Will be the Most Prominent Medium The Internet Will be the Most Prominent Medium

in the Lives of the 18-34 Age Group.in the Lives of the 18-34 Age Group.Source: The Economist, “Crowned at Last: A Survey of Consumer Power,” April 2, 2005, 1-16.

Advertising Strategy

Target Audience

Advertising Objectives

Advertising Budget

Creative Strategy

Advertising Media and Programming Schedules

Evaluate the Effectiveness of the Strategy

Expose communication to target audience

Create awareness

Change attitude(s)

Increase Sales

Generate profits


Increasing UncertaintyAbout Impact onPurchasing Behavior

Increasing Difficultyof Measurement

Type of Objective

• Exposure

• Awareness

• Attitude Change

• Sales

• Profit

Alternative Levels for Setting Advertising Objectives

Budget Determination

OBJECTIVE AND TASK METHOD HAS THE MOST SUPPORT

Media/ Scheduling Decisions

Creative Strategy

Budget Determination

The Vuitton Machine*The Vuitton Machine*Inside the world’s biggest, most profitable luxury brand

BENCHMARKING VUITTON Brand 2003 SalesPercent Operating

Billions Change* Margin Louis Vuitton $3.80 +16% 45.0%

Prada 1.95 0.0 13.0 Gucci** 1.85 -1.0 27.0

Hermès 1.57 +7.7 25.4 Coach 1.20 +34.0 29.9

*At constant rate of exchange **Gucci division of Gucci Group Data: Company reports. BW

Vuitton increased advertising 20% in 2003—spends only 5% of revenues on advertising—about half the industry average

*BusinessWeek, March 22, 2004, 98-102.

Product Distribution Price Promotion

Advertising(How to communicate intended positioning to buyers and others influencing the purchase.)

Creative Strategy

CREATIVE STRATEGYThe creative strategy is guided by the market target and

the positioning strategy.

Provide a unifying concept that binds together the various parts of the advertising campaign.

Media/Scheduling Decision

Television

Radio

Magazines

Online

Website

Outdoor

Relative access to the target audience

Relative cost of reaching the target group(s)

Favorable zone

Unfavorable zone

Advertising Agencies in Perspective

Fast change has come to the advertising industry.

Huge, integrated agencies face a challenging future.

Do clients want a full-service agency?

The business model is in need of change.

The basis of compensation continues to be debated and altered.

Specialists (e.g. media buying services) are being used.

Importantly, the core of the creative process is the agency.

Several methods are available to evaluate advertising results.

Advertising Agency

Role of the Advertising Agency

Target Audience


Advertising Budget

Creative Strategy

Advertising Media and Programming

Evaluate the Effectiveness of the Strategy

Advertising Strategy Implementation and Effectiveness

Decide how to measure effectiveness before implementing the strategy.

Assign responsibility for tracking performance. Assessing the quality of advertising is important. Exposure to advertising is not a very sensitive measure of

effectiveness. Several methods are available to evaluate

advertising results.

MEASURINGADVERTISING

EFFECTIVENESS

RatingServices

Sales andExpense AnalysisTest

Marketing

ControlledTests

RecallTests

SALES PROMOTION

consists of various incentives, mostly short term,

intended to stimulate quicker and/or greater purchase

of particular goods/services by consumers or the

trade.

SALES PROMOTION STRATEGY

STRATEGYSTRATEGYFEATUREFEATURE

• Consumers hate the hassles, companies love unredeemed rebates, Consumers hate the hassles, companies love unredeemed rebates, and regulators are investigating the consumer complaints.and regulators are investigating the consumer complaints.

• As much as 40% of rebates never get redeemed.As much as 40% of rebates never get redeemed.• Some 400 million rebates are offered each year with a total value of Some 400 million rebates are offered each year with a total value of

$6 billion.$6 billion.

• Unclaimed rebates translate into more than $2 billion of Unclaimed rebates translate into more than $2 billion of extraextra revenue revenue for retailers and their suppliers each year.for retailers and their suppliers each year.

• Complex filing rules and long delays discourage consumers.Complex filing rules and long delays discourage consumers.

• Companies emphasize the filing processes are intended to discourage Companies emphasize the filing processes are intended to discourage fraud.fraud.

• The largest rebate processor monitors 10,000 addresses suspected of The largest rebate processor monitors 10,000 addresses suspected of submitting bogus rebates.submitting bogus rebates.

• Rebates offer companies an opportunity to promote small discounts Rebates offer companies an opportunity to promote small discounts without marking the products down.without marking the products down.

• Rebates have become very popular with computer and consumer-Rebates have become very popular with computer and consumer-electronics companies.electronics companies.

The Realities of Mail-in Rebates

• The value of rebates has also increased.The value of rebates has also increased.

• Regulators are intensifying their scrutiny of the companies offering Regulators are intensifying their scrutiny of the companies offering rebates.rebates.

• The developing back-lash against rebates is pushing some companies The developing back-lash against rebates is pushing some companies to halt rebate strategies.to halt rebate strategies.

• Others are encouraging online filing.Others are encouraging online filing.• Fulfillment houses are revising their processing systems, using Fulfillment houses are revising their processing systems, using

computer technology to validate claims.computer technology to validate claims.

• Consumers would like mail-in rebates to go away but want the best Consumers would like mail-in rebates to go away but want the best price they can get.price they can get.

Source: Brian Grow, “The Great Rebate Runaround,” BusinessWeek, December 5, 2005, 34, 36, and 37.

SALESPROMOTION

TARGETS

ConsumerBuyers

Salespeople

BusinessBuyers

Value Chain

Sales Promotion Activities and Targets

Activities include trade shows, specialty advertising, contests, displays, coupons, recognition programs, and free samples.

Reliance & Retail

Jerry Jose

"Growth has no limit at Reliance. I keep revising my vision.

Only when you can dream it, you can do it."

Dhirubhai H. AmbaniFounder Chairman Reliance Group December 28, 1932 - July 6, 2002

Foundation

• The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002),

• India's largest private sector enterprise

• Businesses in the energy and materials value chain.

• Group's annual revenues are in excess of USD 22 billion.

Mukesh Ambani

• Chemical Engineer from the University of Bombay and pursued MBA from Stanford University, USA.

• Joined Reliance in 1981 and initiated backward integration from textiles into polyester fibers and further into petrochemicals

Mukesh Ambani

• Conferred 'ET Business Leader of the Year' Award by The Economic Times (India) in the year 2006.

• Had the distinction and honor of being the co-chair at the World Economic Forum Annual Meeting 2006 in Davos, Switzerland.

• Ranked 42nd among the 'World's Most Respected Business Leaders' and second among the four Indian CEOs featured in a survey conducted by Pricewaterhouse Coopers and published in Financial Times, London, November 2004.

Mukesh Anbani

Conferred the World Communication Award for the 'Most Influential Person in Telecommunications in 2004' by Total Telecom, October, 2004.

Chosen 'Telecom Man of the Year 2004' by Voice and Data magazine, September, 2004.

Ranked 13th in Asia's Power 25 list of 'The Most Powerful People in Business' published by Fortune magazine, August, 2004. 30 Growth is Life

Mukesh Ambani

• Conferred the 'Asia Society Leadership Award' by the Asia Society, Washington D.C., USA, May, 2004.

• Ranked No.1 for the second consecutive year, in The Power List 2004 published by India Today, March, 2004.

Men Behind Reliance

• Anil D Ambani joined Reliance in 1983 as Co-Chief Executive Officer, and was centrally involved in every aspect of the company’s management over the next 22 years.

Anil Ambani

Credited with a number of path-breaking financial innovations in the Indian capital markets.

Spearheaded the country’s first forays into the overseas capital markets with international public offerings of global depositary receipts, convertibles and bonds.

1991, directed Reliance Industries in its efforts to raise over US$ 2 billion.

Anil Ambani

• Steered the 100-year Yankee bond issue for the company in January 1997.

Why Reliance in Retail?

• Currently, selling through company-owned stores currently totals just $8 billion in India. Industry estimates say that the country’s retail industry is worth $300 billion, that is about Rs 13,50,000 crore. This stands a chance to blossom to $427 billion in the next four years. Organised retail accounts for just over Rs 35,000 crore.

Reliance Companies in Retail

• RIL's Retail Project will be through the following companies:– Reliance Retail Limited – Subsidiary of RILRanger Farms Private Limite – Subsidiary of Reliance Retail Limited– Retail Concepts and Services Private Limited– Subsidiary of Reliance Retail Limited– Reliance Retail Insurance Broking Limited– Subsidiary of Reliance Retail Limited– Reliance Dairy Foods Limited– Subsidiary of Reliance Retail Limited– Reliance Retail Finance Limited– Subsidiary of Reliance Retail Limited– RESQ Limited– Subsidiary of Reliance Retail Limited– Reliance digital Retail Limited– Subsidiary of Reliance Retail Limited– Reliance Service Solutions Limited– Subsidiary of Reliance Retail Limited

Reliance World

• Reliance World (formerly Reliance WebWorld) is a world-class nationwide chain of retail outlets for products and services of the Reliance – Anil Dhirubhai Ambani Group.

• Digital world of information, communication, entertainment and utility services.

• Connected to Reliance’s countrywide optic fibre network.

Reliance world

The Broadband Centre

With 241 Reliance World outlets across 105 cities in the country.

Qwiky's, has 22 outlets, apart from 76 Java Green coffee outlets in the Reliance Web World chain across the country.

Reliance communication

• In July 2003, Reliance Communications joined hands with HDFC Bank to deploy India’s first wireless Point of Sale (POS) for processing credit card transactions.

• Wireless POS enables banks to significantly expand the number of retail outlets accepting credit cards.

• Caused expansion of credit cards & ATM retail for banks in smaller towns.

Reliance money

“This is our effort to take financial instruments to rural masses and give them an opportunity to invest in various financial products like mutual funds, stocks and gold coins and secure their lives and other valuables by taking adequate insurance cover.

Reliance Money

• launched services in rural market

• Reliance Capital announced its tie-up with the Rural Relations, a rural consumer relations organisation.

• first to deploy Internet-enabled retail kiosks for trading

Present

The company, at present, has presence in 727 cities and towns across India.

1,000 talukas across five states in the country.

The five states have been covered. Madhya Pradesh, Maharashtra, Gujarat, Andhra Pradesh and Karnataka.

Future

20,000 outlets and 10,000 kiosks across the country by the end of this year.

10,000 outlets in over 5,165 talukas across the country by the end of this fiscal in Rural Area.

Extend its presence in Tamil Nadu, Chhattisgarh, Uttar Pradesh, Uttarakhand and Rajasthan.

Reliance key Petrol Pumps Dhabbas

Food restaurant aimed at anyone and everyone.

Charpais, khats, and normal tables.

Separate sections for family.

Showers for the long distance riders including truck drivers.

Reliance key Petrol Pumps Dhabbas

Reliance Infocomm tower.

Soon Reliance WebWorld

Free lunch/dinner to truck drivers getting in more than 100 litters of diesels and other schemes like these.

Future Reliance Petrol pumps.

• Not going straight ahead with expansion of its n/w for distribution, instead going to be export oriented company, to stay away from govt. pump competition.

Reliance Retail

• In talks to buy a stake in north-India based Modern Dairies.

• agriculture to retail.

• Not successful to expectations.

Reliance Mart

Reliance Mart steps up realty deals

The hypermarket arm of Reliance Retail

Plans to set up mega retail stores.

Reliance Mart

Inked acquisition deals for over 50 million sq ft via franchise & direct routes.

Target of a 100 million sq ft by 2011 to develop its hypermarket business.

• Reliance Mart’s first hypermarket opened in Ahmedabad on Wednesday 15th of Agust.

Reliance Mart

Would cover areas ranging between 1,65,000 to 2,00,000 sq ft.

40 % floor space will be earmarked for garment brands

The rest to stock home goods, white goods, footwear and food products.

Reliance mart

a range of over 95,000 products

categories fresh produce, food and grocery, home care products, apparel and accessories, non-food FMCG products, consumer durables and IT, automotive accessories, lifestyle products and footwear.

Unique services Tailoring, shoe repair, watch repair, a photo shop, gifting services and laundry services.

Reliance mart

automotive accessories, fine jewellery and fashion jewellery in a retail format for the first time.

The hypermarket also launched a host of Reliance's in-house brands

EDLP (every day low price) basis at prices 15-20% lower than market prices.

Reliance Mart

house a health and wellness store providing pharmaceutical drugs and other wellness products.

Reliance Mart will also sell as a part of its Lifestyle section.

cafeteria providing quality food and beverages, an ATM machine

consumer service / membership desk.

Reliance Mart.

61 check out counters

first time in India introduced the Mobile POS system for faster check outs.

The store planning, atmospheres and layout has been designed to provide “a complete solution”

Reliance mart

open from 10:00 a.m. to 10:00 p.m. seven days a week.

Reliance One, a common membership and loyalty program, Earn Anywhere, Spend Anywhere.

Attractive finance options, including 0% financing for your purchases on select products.

Future

Plan to open one or two new stores every month during this financial year.

Reliance Mart is a part of the Reliance group’s $5.5-billion retail initiative, targeting revenues of 1 trillion rupees ($24.6 billion) by March 2011.

Reliance Retail is expecting a top-line of Rs1,000 per sq ft/month.

Future

a pan-India presence

opening 30 Stores by the end of the year

500 by the end of 2010.

Reliance fresh.

• RIL’s Rs 25,000 crore venture

Reliance Fresh

Reliance Retail - 240 neighbourhood and convenience stores under the Reliance Fresh chain.

1.31 lakh Reliance loyalty customers, across Punjab, Andhra Pradesh, Rajasthan, Tamil Nadu, Delhi, Jharkhand, Karnataka, Gujarat, Maharashtra, Madhya Pradesh and Kerala.

Introducing retail apparel, footwear, women wear and lingerie at its stores.

Reliance Fresh

‘Reliance One’, customers can earn 1 RelianceOne point for every Rs 100 spent.

Open from 8 am to 9 pm, 7 days a week.

Fresh fruits and vegetables, staples, top-up grocery and ‘Reliance Select’, the Reliance brand of products.

Reliance Fresh

Unmatched affordability, quality, and service to the consumers.

Prosperity to the farmers.

Diageo, the world’s leading premium Drinks Company has announced a tie-up with Reliance Fresh to retail its international wines portfolio in India.

Reliance Fresh

20 trained sales associates attending to the customers.

Provide direct employment to 5 lakh young Indians and indirect job opportunities to a million people

Future

Plans to add more stores across different geographies, and eventually have a pan-India footprint by year 2011.

seamless supply chain infrastructure, unprecedented even by world standards.

Reliance is aiming to touch almost every Indian customer and supplier.

Reliance Retail Future

Aims to launch 700 Reliance Town Centre (RTC) in the country to cater to population below 3 lakh.

These centres will house everything that a town needs. first Centre by December.

More centres next year across the country and the company aims to introduce first RTC in north India.

Future

From health centre to vocational training to multiplexes and retail, RTC is poised to become a centre point for various segments dwelling in town.

an auto-centre

60,000 to 2 lakh sq ft depending on the size of the town,

Future

plans to introduce rural business hubs (RBH) for the rural population and it aims to add 1,600 RBHs in the next few years.

Reliance Retail will soon have around 100 private labels across product categories

cheaper than mainstream brands.

Pharma major Cipla is in talks with Reliance Retail for an outsourcing arrangement

Future

Reliance Retail is getting ready for the launch of its pharma retail business next month.

The first pharma retail outlet in Reliance Retail hypermarket in Ahmedabad.

The group’s first exclusive Reliance Health and Wellness store will come up in Hyderabad.

Reliance Textiles.

• Reliance has roped in world famous Italian Designer, Mr. Maurizio Bonas of "Made in Italy“.

• Plan to introduce Bonas Designer label in India through Reliance and Vimal Retail outlets.

• Only Vimal Retail Outlets:

• Provide customers with the best designs and surprise them with prices.

Thank You!!!

Final Presentation New

Documents

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