Holistic/Sustainable Marketing

Holistic/Sustainable Marketing

Effective marketing and business practices should be backed with a strong sense of ethics, values and social responsibilities. A number of forces are driving companies to practice corporate social responsibility, as rising customer expectations, investor interest in social criteria, media scrutiny, and changing business procurement practices. In the race for achieving maximum out of the market, it is important that we do our bit for the society, for the environment and add a human touch to the business entity. The parent company of AllOut, SC Johnson, is actively engaged in a number of social activities aimed at betterment of the people, society and the environment. A few to mention:

• Reduced Greenhouse gasses emission

• Using more renewable energy

Clean energy initiatives of SC Johnson round the world.

• SC Johnson was also names in the 100 best companies to work for, for working women. They achieved this feat for the 25th time going on to only exhibit how committed they are to the well-being of their workforce, both at work and at home.

• SC Johnson Supports National Museum of American History Renovation.Company Pledges $5 Million to “American Enterprise” Exhibition and New Conference Center. They make sure they do their bit for the well-fare of the society. 

• United Nations and Foundation for Social Change Honor SC Johnson as Global Leader of Change. Global Conference for Social Change Recognizes Company for Strong Commitment to Environmental and Social Issues.

• SC Johnson Teenage Environmental Education Fund Celebrated 20th Anniversary this year. More Than 80,000 Students Participate Every Year In Company’s Ongoing Commitment to Environmental Education in China.

Below is a link to a report published by SC Johnson which mentions all the CSR activities that the firm has undertaken in the year 2013.

CSR-SC Johnson

Analyzing Consumer Markets

Analyzing Consumer Markets

Markets dominated by products and services designed for the general consumer. Consumer markets are typically split into 4 categories - 

• Consumer Products
• Food & Beverage Products
• Retail Products
• Transport Products

Industries in the consumer markets often have to deal with shifting brand loyalties and uncertainty about the future of the products and the services. In contrast to business markets, the consumer markets consists of buyers who buy on the basis of description, appearance, colour, style etc. This behaviour highlights the uncertainty factor in these markets.

Market Analysis

• There was a growing number of Malaria and Dengue cases that were being reported during the 1990's. This meant that there was huge opportunity to introduce a product that would help the people by protecting them from the carriers of Malaria and Dengue - Mosquitoes.
• Market was so wide that even the entries of competitors onto the field would only widen the market further, thereby increasing chances of AllOut sales even though the market share would come under jeopardy. 
• Today, the market is much more dynamic with a lot of players in the market.
• The buying power of people has increased from the days when it was launched.
• With increasing education and ease of access of technology, more and more people are becoming conscious about their health and well-being.
• Combining the above factors of ease of technology access,education and rising buying power, the market has become more accepting to goods and services which protect them from diseases and ensure their well-being.
• Conversely, because of the above mentioned factors, the market has become increasingly unpredictable and there is no certainty about the success or longevity of the product/service. The buying power gives the consumers the upper hand over the producers. This power gives them the option to pick an AllOut or a GoodKnight or a Mortein as a repellent. So it is very important that a very strong relationship be developed between the customer/consumer and the company. It is important to cater to the changing needs and maintain a healthy relationship with the customers to prolong the product's/brand's life.  

Analyzing Business Markets

Analyzing Business Markets

AMA defines Business Markets as  the set of all individuals and organizations that acquire goods and services that enter into the production of other products or services that are sold, rented, or supplied to others.

The major types on industries making up the business market are agriculture, forestry, mining, manufacturing, fisheries etc. 

AllOut is a product for the consumer market as it does not involve being purchased for the production of other goods which are further rented or sold to the consumer. 

Essentially, AllOut is a more B2C product and not a B2B product.

Branding

Branding

AMA defines a brand as a name,sign,symbol or design, or a combination of them, intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of the competitors. 

Importance of Branding

• Important drivers of growth for an organization.
• Behind the brand stands an unspoken promise of value.
• Helps make a mark and differentiate from the rest of the players.
• Help customers relate to the product at an emotional level.

Importance of Branding to the Seller

• Products' are not of bad quality
• Satisfied customers
• More money
• Competitive advantage

The Brand All Out

All Out as a Brand has developed considerably ever since it was first introduced in 1990. It was launched at a time when coils and mats dominated the market of mosquito repellents, and today it stands as the leader of the market. Over the years the brand All Out has gained a lot of trust and faith of its consumers and customers. It has become increasingly synonymous with familial protection and health care. It has now positioned itself in such a way that it not only kills mosquitoes and prevents Malaria/Dengue but also ensures good health and well-being of the family. 

It is also competitive priced now, making it easy for the lower income households to purchase it thereby sending across a message that good health is for everybody. 

STP

Segmentation, Targeting & Positioning

• Segmentation: grouping consumers by some criteria 

• Targeting: choosing which group(s) to sell to 

• Positioning: select the marketing mix most appropriate for 

the target segment(s) 

Segmentation

Initially launched at higher price, All Out today aims to be a relatively inexpensive gadget.

They're focusing on the following segments - 

• Geographical: only metros initially, urban centers and towns later
• Demographic: Cuts across age and focuses on family protection. Through Income, it tried to absorb the lower income group with the "deadly exchange offer".
• Psychographic/Lifestyle: Affluent class first, followed by the middle income group.

Targeting

Of the segments that All Out made, on the basis on Demography, geography and Psychography, it targets the educated and the more technologically affluent class of people. This is because of its proposition of health protection from mosquitoes and other diseases. In a gist, their segmentation opf the market allowed them to target a varied section of the market - familial needs, health conscious and technologically sound people. 

Positioning

All Out initially positioned itself as the gadget for the premium class. To position themselves that way, they priced their product at a higher price which automatically put it out of reach of the middle and low income groups. This was during their introduction phase.

It then slowly moved toward the middle income group during the time of the "Maccharron ka Yamraj" campaign. They showed how the repellent kills mosquitoes and prevents Malaria and Dengue. They moved toward the middle income group as by now, competitors in the vaporizer market had come in.

Later it tried capturing the low income group with the deadly exchange scheme. It was little before this that they also re-positioned All Out to be a family protector from diseases. They took the Frog off from their campaigns and now stressed upon how using All Out shall protect the health and promote the wellness of the family and their loved ones. This simply built an emotional connect with the audiences.

Sales Function

Sales Function

The American Marketing Association defines Sales as "Any of a number of activities designed to promote customer purchase of a product or service. Sales can be done in person or over the phone, through e-mail or other communication media. The process generally includes stages such as assessing customer needs, presenting product features and benefits to address those needs and negotiation on price, delivery and other elements."

Objectives of Sales

• Achieve Sales Targets
• Achieve Market Share Targets
• Manage Dealer Network
• Organize Sales Training
• Handle Customer Complaints
• Manage Sales Promotions Complaints
• Effectively Cover the Market

Sales Funnel

At the top of the funnel you have "unqualified prospects" – the very many people who you think might need your product or service, but to whom you've never spoken.

At the bottom of the funnel, many sales and delivery steps later, you have people who have received delivery of your product or service and have paid for it.

In case of All Out, it is a product that people purchase from the general stores/markets. It is not a product that will require salesmen for direct selling or personal selling. It is made available in most general stores, super markets and all other stores where people usually go to purchase stuff.

Integrated Marketing Communications/Promotions

Integrated Marketing Communications

Marketing Communications Mix

While developing communications mix, it is very important to ensure that the process starts with a clear target audience in mind, potential buyers, current users, deciders, influencer etc. The target audience is a critical influence on the kind of communication campaign we choose.
It consists of Eight major models of Communication - 

1. Advertising

Any paid form of non personal presentation and promotion of ideas,goods or services via any from of media. All Out, over the years, has done a number of television advertisements and print advertisements to keep the audiences' engaged. Their longest running advertisement was with the Frog, and the tagline "Maccharron ka Yamraj".

Below is the link to their advertisement - 

Macchraon ka Yamraj

They even used cricket matches and aired their advertisements between the breaks to catch the eye of the match viewers.

As the positioning of the brand changed, the frog was replaced after 15 years of the ads running. It was now being changed to a more family oriented brand.

2. Sales Promotion

A variety of incentives to initiate trial or purchase of the product. It includes trade promotions, sales rep promotions and consumer promotions.  All Out's advertising campaigns which promised to protect the family from Malaria and Dengue were in a way sales promotion techniques. There was no direct selling in the channel as All Out was not a direct selling product but more of a general store purchase product. A lot of other incentive schemes were used such as super savers, One plus One, Deadly Exchange Scheme etc. These schemes impelled the customer to try the product at least once.

 

3. Public Relations & Publicity

A variety of programs directed internally or externally to promote the company's image or product. All Out did happen to use quite a lot of PR when it got caught in a controversy involving the use a chemical called Allethrine, which was supposedly poisonous. The PR of the of firm came into picture and managed the situation while the company shuffled their ingredients to make them more society-eco-friendly.

4. Word-of-Mouth

People to people, oral communication or written or electronic communication that relate to the experience of using the product.

5. Events 

All Out has also been a part sponsors of cricket tournaments at the lower tiers of the game to increase visibility.

There are other modes of the communication mix but aren't that dominant in case of All Out. They are - 

Direct Selling

Personal Selling

Interactive Selling

Distribution

Distribution

By Definition, Marketing channels are a set of independent organizations participating in the process of making a product or service available for consumption to the user.

There are different kinds of channels based on the number of levels between the manufacturer and the consumer/customer. They are - 

• 0-Level : Manufacturer : Consumer

• 1-Level : Manufacturer : Retailer : Consumer

• 2-Level : Manufacturer : Wholesaler : Retailer : Consumer

• 3-Level : Manufacturer : Wholesaler : Jobber : Retailer : Consumer

AllOut currently follows the 2-Level strategy. The product is first taken by the distributors/wholesalers and then distributed to the retail outlets from where the customer purchases it.

Company data shows that in 2001, there were 120 distributors of AllOut and of the 900,000 outlets that sold repellents in the country, AllOut was available only in 20% of the outlets. The lack of an established distribution setup was one of the major reasons why GSLL and R & C had an advantage over KPLL, with the former two being multi-brand companies.

Relationship between Life Cycle Concept & Marketing Channels

The marketing channels used to get the product through to the consumer also depends on a number of factors. We can also relate the marketing channels picked based on the Life cycle stage. 

• Introduction Stage - Selective distribution; more focused.

• Growth Stage - Increase the distribution; make the product available in more outlets to ensure maximum reach.

• Maturity Stage - Maintain the distribution reach acquired in the growth stage or maybe even increase it by a little to prolong the maturity stage by keeping the reach broad.

• Decline Stage - Gradually withdraw the product from intensive distribution and make it more narrow.

As and when the life cycle stage evolves, the distribution also varies. This is mostly done to cut down on excessive distribution costs, quality control etc. 

Pricing

Pricing

Pricing is a very integral part of the mix as it affects how customer perceives the product on offer. There are a number of different strategies that a brand may adopt through the course of the life cycle.

For instance, AllOut priced the product high when it was first launched in the market. This created a premium image for the brand as the amount that it was priced at, it could not be purchased by the mass. Also, being a first mover in the market, a category creator, it could afford to charge a premium rate as there was no competition in the vaporizer market.

Over the years, AllOut has adopted a number of pricing schemes. They are - 

• Captive Pricing - The basic product is sold at little margin where as the ancillary product is sold at a higher margin. The vaporizer is the basic product and the ancillary is the refill. The customer can keep replacing/purchasing the ancillary as and when required.

• Product-Line Pricing - Companies normally develop product lines to cater to a varied class of customers. There can be the same product priced at different amounts to show maybe a quality difference. For instance, AllOut & Baygon serve the same purpose but are priced differently.

 

• Optional-Feature Pricing - Some products have an entry level price with the product having the basic features where as other modifications or additional features in the product has a different price tag to it. In cars for example, basic model may cost different and the high end model with leather seats and air bags may cost different. In case of AllOut, AllOut, the regular vaporizer is priced differently from AllOut Total, which claims to have twice the power of any other regular vaporizer.

Both the above products served the same purpose, but were different;y prices with one having said to have more power than the other.

The Product

Customer-Goods Classification

All Out as a product falls under the category of convenience goods as these are the goods which the customer buys frequently, immediately, and with minimal effort. All Out falls under this category of goods because of the basic benefit it provides - protection from mosquitoes and a good night's undisturbed sleep. It caters to the customers requirement of keeping mosquitoes away from biting them. This basic benefit makes the product a frequent buy.

Product Mix

A product mix consists of the set of all products and items a particular seller offers for sale. 
The parent company - SC Johnson has the following items on offer - 

Product Levels

Five product levels constitute a customer-value hierarchy. They are - 

Core Benefit

Fundamental level. It defines what the customer is really buying. In case of All Out, the customer is really buying a mosquito repellent.

Basic Product

The core benefit is then converted to a basic product by providing the customer with the liquid vaporizer that will help them keep mosquitoes away.

Expected Product

The customers expect a set of attributes when they are buying the product. In case of All Out, the customers expect to have a sound night's sleep and keep mosquitoes away. 

Augmented Product

Here is where the product has reached a maturity stage in the life cycle where it has to play around with the positioning of the product. In case of All Out, they positioned themselves as "Maccharro ka Yamraaj" for 15 years. With their Frog having outlived it's utility, they re-positioned themselves with the focus shifting to - "Maccharro pe Vaar, Surakshit aapka Parivaar". This re-positioning can be looked upon as a sign of an evolving market with the focus of All Out shifting. New features such as the Japanese Wick replacing the ordinary wick & All Out Total (claim to have twice the power of the regular repellent) are examples of new variants to cater to different customer requirements.

Potential Product

Potential product is one where the companies start to look for new ways to satisfy the customer requirements. For All Out it could be increasing the life of the repellent for a few more days or different quantity of refills of the liquid or maybe even introduce a new product in the same category.

Relationship between Product Levels & the Kenichi Ohmae model of 3 C's.

The Product Hierarchy

Item

AllOut Liquid Vaporizer w/ 90n refill

Product Type

It is the Brand variety that is referred to in the product type.

In this case, it is a Liquid Vaporizer w/ 90n refill.

(AllOut also has other varieties like 45n refill and a 60n refill)

Product Line

We refer to the Brand that the company has built for catering this particular requirement of the people. In this case SC Johnson has 2 brands for catering to the same need in the Indian market - AllOut & Baygon. 

Product Class

Here we essentially are talking about the sub-category to which the item belongs to. AllOut belongs to the Insect Repellent sub-category.

Product Family

We refer to the Category to which the item belongs to. We can place the Insect Repellent sub category under the umbrella of Home Care Products.

Need Family

It caters to the customer requirement of having a clean and safe and disease free home.

Marketing Mix

The Marketing Mix

Product :

• First Mover
• Technologically advanced
• Quality
• Category creator

Place :

Right from it's introduction in the Indian Market, the distribution for All Out has been a little disorganized, much owing to the fact that it's competitors (Godrej and R & C) were multi-product giants who already had well established distribution networks.
Even today, studies show that a major reason why Good Knight could take over as the market leader from All Out was because of the fact that they had a better distribution network and a strong product mix.

Price :

High in the introduction phase. This positioned All Out for the premium class.
Later moved to targeting the mid income group post the introduction phase.
Techniques like Product Line Pricing (Different variants of the refill) & Captive-Product Pricing (Refills sold on high markup)
Now priced competitively with other players of the market.

Promotion : 

Aggressive marketing strategies adopted. They've tried a number of offers and schemes (Twin pack, Exchange offer etc)

The iconic Frog of All Out still has impressions in the minds of the viewers.

Use of taglines such as - "Maccharro ka Yamraaj" & "Maccharro pe Vaar, Surakshit aapka Parivaar" were an instant hit.

The Maccharro ka Yamraaj Campaign.

Life Cycle Concepts

Life Cycle Concepts

Life Cycle concepts basically indicate the stage at which the product/brand/industry is currently at. The stages are broadly classified into - 

• Research & Product Development
• Introduction
• Growth
• Maturity
• Decline

Industry Life Cycle

The concept of a product life cycle showcasing the product as a mortal with stages of life and death has often drawn a lot of criticism. For instance, there are a number of examples were the product has reversed the life
cycle stages and successfully managed to revive the brand with brilliant re-positioning and marketing strategies. It also doesn't take into consideration other factors like competition and innovation while plotting the graph. Therefore, an Industry/Brand Life cycle can give us a clearer picture.

The industry life cycle takes into consideration the entire industry including the competition, innovation, sales, profit factors etc. In this case, the Mosquito Repellent Industry. As per estimates, the mosquito repellent industry is slated to grow in the coming years owing to the increasing demand of mosquito repellents in form of mats,coils and liquid vaporizers. This puts the industry in the growth phase of the life cycle. 

However, another important thing to note is the fact that with the development of every new category, there could be a fall in the other. For instance, the development in the vaporizer category saw a dip in the mats category. In such cases, a rise in one and a fall in the other can be seen simultaneously in the life cycle graph. 

  

Competition

Competition

All Out is an interesting brand for studying the concept of Competition and the Industry.

A brand faces competition at different points of time, be it while entering the market or after being in the market for a considerable amount of time. In case of All Out, it faced the initial challenges of being the First Mover in the Category. It entered the industry at a time when it was dominated by mosquito coils and mats, and developed a new category of its own - Liquid vaporizer mosquito repellents.

Category & Industry Competition

As a first mover and developer of a new category, it did not face competition in the initial phase of its entry in the Indian market. Back then it was more about the various challenges they faced in the industry for starting a new category. Challenges like creation of demand for the category, studying the potential, mastering the resources' flow etc. However, there were a number of players who were already vying for the market share in the then mats/coils dominated industry. Some of these brands have also moved toward more innovative tools of repellents. The Mosquito Repellent industry has the following major segments -

• Coils
• Mats
• Creams
• Vaporizers
• Sprays

Bayer  

• Baygon Spray
• Baygon Power mats
• Baygon Knockout 

Balsara Hygiene

• Odomos

Tainwala Chemicals

• Casper mats & coils

Jyoti Laboratories

• Maxo

GSLL (Godrej Sara Lee Limited)

• Jet Fighter (coil)
• GoodKnight Jumbo (coil)
• GoodKnight Instant (coil)
• GoodKnight Smokeless (coil)
• Jet Jumbo (coil)
• Banish (mats)
• GoodKnight Activ + Liquid (vaporizer)

Reckitt & Coleman (Now Reckitt Benckiser)

• Mortein
• Mortein King
• Mortein Red

GSLL launched it's own vaporizer under the GoodKnight brand in 1996-1997. It soon acquired 40% of the market share of the vaporizer market. Instead of eating into All Out's sales, GSLL ended up expanding the market. However, by 1999, GoodKnight lost most of it market share to All Out and dropped to 19%.

 As of 2012, GoodKnight leads the market with All Out coming in at a close second.

Who, What, Which and How ?

Who, What, Which and How ?

• Who buys this item ?

Customers.
Mostly bought by the house makers i.e. mother, father etc. The product is consumed by the entire family with focus being on the children of the house.

• What problem will this product solve ?

It will solve the problem of mosquito bites and mosquitoes. It positions itself to be a protector of the family's/Kids' from mosquitoes and helps in ensuring a good night's sleep.

• Which attributes are important & Why ?

First of it's kind in the market : The Indian market had never seen a vaporizer to drive away mosquitoes.                                                     They were still pretty used to using mats and coils.

Refill Liquid : The vaporizer needs to be bought only once and the liquid can be replenished as and when                            required.

Avoided Health hazards : It minimized the chances of being a health threat to kids as now there were no coils or mats that the kid would swallow, thereby attracting the mothers to purchase the product.

• If this decision is the first time, how will it go ? If it is repeat, how will it go?

If it's a first time decision then  But the fact that it helps protect families from mosquitoes will over power the hesitation.

The Brand : A first time decision will not be made on the basis of the brand name. All Out came in at a time where the market was dominated by coils and mats players.

The Product : Also, since it is a new product in the market(A vaporizer didn't exist in the Indian market until KAPL introduced it) it will be difficult to push it from among a highly coil/mat dominated market. Also, the pricing that All Out adopted was restricting them to only the higher section o the society. So, the customer may be a little hesitant about the efficiency and VFM of the product.

A repeat decision will be based on their favorable/positive experience with the product on the first try. This repeat decision will slowly help All Out in increasing their brand presence.

• How was the deliberation in your head?

There was absolutely no doubt in my mind when I purchased the product. All Out has now been in the market for quite sometime and it is clearly the market leader in the mosquito repellent industry. Reasons why I pick All Out vaporizer - 

1. No more worrying about mats/coils.
2. Ease of use.
3. Easy refill as and when required.
4. Effectiveness.

Customer Value

Value

Value is something that a firm drives for its customers/consumers/clients/partners or the society at large. Value to a customer is perceived to be the benefit he drives from the product/service for the resources that are spent.
Something that is over and additional to the use of the product which puts across a feel good factor for the customer.

Value proposition of All Out has the trust factor associated with it. It positions itself as the family's protector from diseases and works all night to ensure that they enjoy sound sleep.

Customer - Drives across a value proposition of protecting the kids from mosquitoes and ensuring a good night's sleep. For the customer, he/she is spending money not on a product but on their family's safety.

Consumer - Drives across a value proposition of protection from diseases.

Retailer - Different variants increase that the need for different kinds of customers is catered to.

  

Introduction

Marketing Diary

Marketing

Definition

Marketing is the activity, set of institutions, and processes for creating, communicating, delivering and exchanging offerings that have value for customers, clients, partners, and society at large.

All Out - Diary

All Out - Overview

• All Out is a liquid vaporizer first introduced by Karamchand Appliances Private Limited (KAPL) in India.
• Introduced in April,1990 in Mumbai.
• Revolutionized the Indian mosquito repellent market by introducing the vaporizer in a market dominated by coils and mats.
• SC Johnson, an American privately held company, acquired a controlling stake in KAPL.
• Known for its highly successful ad campaigns.