final innovative marketing

7/31/2019 FINAL Innovative Marketing

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INNOVATIVE

MARKETING Prepared By


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WHAT IS INNOVATIVE MARKETING

A marketing innovation is the implementation of a newmarketing method involving significant changes inproduct design or packaging, product placement,product promotion or pricing.

Marketing innovations are aimed at better addressingcustomer needs, opening up new markets, or newlypositioning a firms product on the market, with theobjective of increasing the firms sales.


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The Rural Bharat and Urban India

India has 2 economies

1. The rapidly growing Urban India housing the worlds best IT firms and theworlds biggest slums

2. Rural India, which still depends on subsistence agriculture

Due to the vast difference in the economies, lifestyles, tastes and accessibility,different strategies have to be adopted to enter each segment. Strategies would differbased on

Product:Rural Bharat: Basic necessities.Urban India: Discretionary items and basic necessities

Price:Rural Bharat: very price sensitive, extremely inelastic, the lower theprice, the betterUrban India: looking for the price quality balance. Just low price is notsufficient

Promotion:Rural Bharat: One to one education, TV, local events and festivals.

Urban India: 360 promotion

Placement:

Rural Bharat: small ration shops, hawkers, local markets. Making thedistribution channel very difficult and far flung. Local and efficientdistribution is essential to ensure penetrationUrban India: all modern trade channels, making the distribution easierand manageable.

VS
http://www.dinodia.com/ImageBigView.asp?ImageID=207605&ReturnfileName=SearchResults.asphttp://www.dinodia.com/ImageBigView.asp?ImageID=207605&ReturnfileName=SearchResults.asp


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The 4 As rule for innovating in Rural

IndiaAvailability

Ensure high network of service centers and personnel

LG: 230 service centers, 65 remote area offices, 2600 mobile service personnel

Coca cola: has evolved a hub system in Rural India to ensure full supply

Hindustan Unilever: to serve remote villages they use all forms or means of

transportation from rickshaws and bullock carts to boats

Supply chain management: due to lack of connectivity it isvery essential to have efficient and effective Supply Chain

HUL Shakti: using rural women as distributors of HUL products

Tata: uses NGO network to distribute products

Reliance Retail: uses procurement from local villages to supply to theneighboring cities
http://3.bp.blogspot.com/_VMCCOqUYc5c/SXSj7V37_hI/AAAAAAAAA08/sLAAe1172es/s1600-h/shakti.jpg


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Affordability

Provide cheap prices by introducing smaller unit packs

Godrej: introduced its key proposition in soaps and fairness cream in 50 gm packs for Rs 4-5 forMadhya Pradesh, Bihar and Utter Pradesh

Coca cola: grabbed the rural India market share by introducing returnable 200 ml glass bottlesof Coke for Rs 5, to bridge the gap between soft drinks and locally available options like tea,lemon water and butter milk

Hindustan Lever: launched its best selling soap Lifebouy at Rs. 2 for 50 gm

LG launched its first low priced TV for Rs 3000


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Acceptability:

Offer tailor-made products suited for the needs and lifestyle ofthe market

Coca Cola: understanding the problem of lack of electricityand refrigerators in rural areas, Coca Cola provided low cost

ice boxes and thermocol boxes HDFC: tied with NGOs to offer low price insurance covers

Easy to understand LG: introduced regional language games in its low cost TV

Awareness :

The means of awareness is very different in Rural India incomparison to Urban India

One to one contact program: Use of personal interface is veryimportant to gain trust, demonstrate, induce trial andeducate

Promotion: Entertainment

Cultural events example religious plays andperformances Dances, folk performances

Local annual fairs Annual Hatts (local marketplace) Weekly Marts Mobile vans


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The Marketing Mix For Innovative Marketing

Your product should be an international brand with an Indian heart.

Price (value for money, balance between low cost and good quality)

Case study McDonald's India: value pricing and bundling strategy,Happy Meal, Combo Meal, Family Meal which helped drive salesvolumes.

Pack (local terms, appealing graphics)

Case study Coca Cola India: Associated the term Thanda (cold)with coke, the term is a generic one which is used to refer to

anything cold in North India. To make Coke part of the commonculture they ran campaigns to get people to associate Thandawith Coke as well.

Promotion(Movies, bollywood and tollywood actors, local icons,sports) difference in promotion tactics based on region

Case study Gillette India: Use of sports as key promotion vehicle,use of Rediff(Indias leading website for news and mail) andZapak (Indias leading geaming website) to market its product

Placement ( supermarkets, local groceries, all modern trade channels)

Positioning

ITC Fiama de Wills Shampoo: entering an over crowded categorydominated by MNC brands, ITC noticed that products are dividedbased on Cosmetic and Natural offering. They decided to combinethese 2 benefits and offer the best of both worlds.

Once all these criteria are met then the middle class Indians willbecome purchasers with a high degree of loyalty to a specificbrand


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PRODUCT INNOVATION


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NANO CAR

Tata Motors launched world'scheapest car, Tata Nano in India inMarch 2009. It is fast, swift and mostimportantly easy on the pocket.

In November Tata Motors launcheda brand new variant of Tata Nano,which will be available to theconsumers in new colours and wouldcome with a more powerful petrolmotor that will deliver a superbmileage of 25.4 km per litre.


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ChotuKool by Godrej: Cheapest refrigerator

Understanding the need for acheap, lightweight fridge whichconsumes less electricityGodrej came up with thecheapest refrigerator worth Rs3250/-

Innovative distributionstrategy: they employed villagegirls to distribute the product,increasing trial and reducingcosts by 40%
http://www.emergingfutureslab.com/.a/6a00d8341c4e6c53ef01287607956e970c-popup


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Garnier 2 in 1 Shampoo:Convincing the Consumer to Think Differently

Background Indian consumers traditionally oil their hair the night before washing, to lubricate and give itshine

The following morning, shampoo is used and the oil removed So, shampoo and oil do not naturally go together in one product

Challenge Can Garnier convince the consumer that shampoo and oil can go together as a 2 in 1

proposition?

Does the product meet the needs of the consumer? Yes The oiling and shampooing tradition is timeconsuming: time which consumers today do not

have If this product suits both needs and shows equivalent results as actual oiling it would be

accepted

Does the product already exist in the market? No: its new and unique

Result Due to its uniqueness, the product has induced trial The acid test for consumer retention is the actual product quality and effect


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Volvo mini Car

The Volvo Car Corporation has built

a mini-Volvo that takes care of very

special transport requirements

during the European Athletics

Championship in Gothenburg.


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INNOVATIVE

PRICE

STRATEGY

Fl d i i i I di R 1


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Fly to any destination in India at Rs. 1

with Cleartrip

Book early with Cleartrip.com and fly to any

destination in India with Airfares of Rs. 1 and save

your hard earned money.

* All fares above are applicable on specific flights,

are subject to availability of seats and are valid

for travel on specific dates, for each city. Taxesextra applicable on the above fares are subject to

change as per government regulations.


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WORLD TENNIS MAGAZINE

World Tennis magazine sold a lot of ads in the

issues before and after Wimbledon. They

offered a Wimbledon Package that included

ads, list rentals, a trip to Wimbledon withplane, hotel, match tickets, and a meet-the-

players party , hence, he changed the offer

structure. He innovated his offer, thusremoving the competition and making it

easier to pull in much larger profits.


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PACKAGING


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. Dumbbell

Packaging

harnessing the

power ofcleaning to make

you stronger.
http://www.packagingoftheworld.com/2008/12/dumbbell-packaging.htmlhttp://www.packagingoftheworld.com/2008/12/dumbbell-packaging.htmlhttp://www.packagingoftheworld.com/2008/12/dumbbell-packaging.htmlhttp://www.packagingoftheworld.com/2008/12/dumbbell-packaging.html


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Green berry tea, birdshaped tea bagsDesigned by Natalia

Ponomareva, fromRussia. This design iscurrently just aconcept, but

apparently the wingsunfurl in the hotwater.
http://lovelypackage.com/green-berry-tea/http://lovelypackage.com/green-berry-tea/


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Yogurt with a built-in

spoon from Cho Hye-

seung, the yogurt lid

turns into a spoon.
http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/http://www.yankodesign.com/2010/04/07/spooning-the-yogurt/


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PLACE


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Facebook Marketing An Innovative

Market Place For Online Entrepreneurs

Facebook is indeed not only for the lonely hearted whowants to make millions of friends online, but it is also forthe entrepreneurs with the launch ofFacebook marketing.

It is a place where sellers can showcase and promote theirproducts and services online that surelyconnects a seller instantly to millions of potential clients.Marketing on Facebook is a good opportunity forentrepreneurs who do not have the budget to rent

locations to build shops where they can market theirproducts. By just creating a Facebook account, one canalready establish an identity that will connect him/her toother users and online sellers.
http://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.htmlhttp://www.sooperarticles.com/internet-articles/social-networking-articles/facebook-marketing-innovative-market-place-online-entrepreneurs-432857.html


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PROMOTION


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Promotional Products

Promotional products or items are pieces of goods and commodities given

away for free by marketing and communication programs. Typically, these

are stamped or bedecked with the name, appellation, emblem or message

of the particular company or group in question.


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Aircel: Telecom, started its journey in

Mumbai and is now in all othermetros.

On July 13 and 14, when heavy

rains lashed the city. Peoplestranded at the subway used theraft to move around and men in

Aircel branded T-shirts wereavailable to help commuters.


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These 2 glasses were stuck on to the bonnet

and back of my car by someone at a crossing,and I spent a good 20 minutes trying to shake

them off by swerving the car. On reaching

office I took them off and found the magnet

which said "Magnet sticks to Iron a Class V

question SRK Saying Paanchvi Paas


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F K El f I i


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Four Key Elements of Innovative

Promotion

1. Highly innovative promotion campaigns employ the age-old craft of story-telling,

sometimes allowing the user to fill in the missing pieces of the story.

2. Highly innovative campaigns draw the user in often engaging the user in the

story or campaign.

3. Innovative campaigns draw their creativity from the intersection of 2 or more

marketing devices.

4. Highly innovative marketing utilizes an element of surprise and delight.


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Thank You

final innovative marketing

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