ForCoromandel Fertilisers Limited

A strategy presentation by

MAA Bozell

Branding Tall(Steroids for growth)(Steroids for growth)

Scope of the presentationScope of the presentation

� The Brief� Marketing Program Analysis� Our Present Communication Activities� The Emerging Trends in Rural Communication� The Opportunity� The Task on hand� Customer Analysis� Brand Recommendations� Communication Strategy� Creative Strategy� The Media Mix� Rationale

The BriefThe Brief

� CFL will launch its fertilizer products as sub-brands under the GromorGromor umbrella brand.

� Plans to take the GromorGromor brand to the next level of customer interaction/experience.

� Sales target for the year 2004-05 is 7.5 lac tones, i.e. a turnover of Rs. 600 crs approximately.

� Product wise breakup of target sales (in tones):28-28-0 - 3.5 lac tones20-20-0-13 - 1.8 lac tones14-35-14 - 1.5 lac tones10-26-26 - .65 lac tones

The Brief...The Brief...� Market Segmentation based on the product

28-28-0 - AP & Orissa20-20-0-13 - AP 14-35-14 - AP, Maharastra, MP, UP,

Chattisgarh & others10-26-26 - AP, Karnataka & WB

� Reading between the lines- AP contributes 80% of the sale- W.Bengal, MP, UP, Karnataka, Maharastra &

Chattisgarh together contribute the rest.

The Brief...The Brief...� Promotion budget allotted for 2004 – 05

Infield - Rs. 170 lacsCFL (HO) - Rs. 100 lacs

In a nutshell…In a nutshell…

This year, the main focus of the communication plan will be concentrated on building brands for products with the Gromor Gromor DNA while extending the value

proposition of GromorGromor built over the years.

BrandBrandBuildingBuildingBrandBrand

BuildingBuilding

CustomerCustomerAnalysisAnalysis

CustomerCustomerAnalysisAnalysisProductProductProductProduct

PricePricePricePrice

PlacePlacePlacePlace

PromotionPromotionPromotionPromotion

ValueValuePropositionsPropositions

ValueValuePropositionsPropositions

BrandBrandHeritageHeritageBrandBrand

HeritageHeritage

CompetitionCompetitionAnalysisAnalysis

CompetitionCompetitionAnalysisAnalysis

Analyzing the 4 Ps

ProductProductCFL has 4 products to offer under the CFL has 4 products to offer under the Gromor Gromor brandbrand

Product Used for Features/Benefits

28-28-0 

•  Paddy •        Immediate greenery•        Longer effect•        Thoda sa kaphi hai 

20-20-0-13 

•  Maize •        Free flowing•        Exact 50 kgs in a bag (USP)•        13% Sulphur content 

14-35-14 •  Ground nuts•  Sun flowers•  Legumes•  Bengal gram •  Chillies &•  Other vegetables 

•        NPK available in 1:2.5:1 ratio. (USP)•        High Phosphate content.•        63% nutrients, highest among NPK complex fertilizers. 

10-26-26 •  Sugar cane•  Potato, etc.

•        Black in color•        Strong granules

Product…Product…

� The farmers are more interested in the right chemical composition in the fertilizer.

� There exists a parity among the various brands of fertilizers because of the standardized chemical compositions.

� Hence brand differentiation through product offering can be safely ruled out.

PricePrice� The prices for fertilizer products are fixed by the

Government of India.� Price list of CFL products (per bag):

• 28-28-0 for Rs. 471/-• 20-20-0 for Rs. 378/-• 14-35-14 for Rs. 450/-• 10-26-26 for Rs. 434/-

� There exists a marginal price difference between the competing brands, ranging from Rs. 5/- to Rs. 30/- which cannot be altered by CFL to tip the balance.

� Eventually brand differentiation through price offering can also be striked out.

PlacePlace� Availability is the key word in rural marketing.� CFL had 1600 dealers in place.� Brand pull has to be substantiated with the availability

of stocks at the dealers place to result in sales.� At the nearest dealer a farmer tends to look for a

particular brand, and not finding one he buys the next available brand based on the chemical composition.

� Hence a wide spread distribution network is imperative for a fertilizer brand to succeed.

� CFL can harness the place factor to drive competitive advantage.

PromotionPromotion

While distribution overcomes the place hindrance and While distribution overcomes the place hindrance and facilitate sales, facilitate sales, building strong brand equitybuilding strong brand equity through through

promotion is the only way to differentiate the promotion is the only way to differentiate the offering in the consumer’s mind and create a pull for offering in the consumer’s mind and create a pull for

the brand.the brand.

Brand Brand EquityEquityBrand Brand EquityEquity

Brand Brand AwarenessAwareness

Brand Brand AwarenessAwareness

BrandBrandLoyaltyLoyaltyBrandBrandLoyaltyLoyalty

Perceived Perceived qualityquality

Perceived Perceived qualityquality

Brand Brand AssociationsAssociations

Brand Brand AssociationsAssociations

• Aaker’s model

CFL’s Present Promotion ActivitiesCFL’s Present Promotion Activities

� POP material� TV commercials� Radio commercials� Local press ads� Sponsorships � Product literature � Participation in Exhibitions / Seminars� Product Launch programs / Sales conferences� Dealer / Institutions Meetings� Farmer meetings

CFL’s Present Promotion ActivitiesCFL’s Present Promotion Activities

� MDT / Moped Scheme� A V Vans� Wall Painting work� Burrakadha & Local talent program� Intensive Consumer contact program (ICCP)� Screening of commercial film in rural theatres.� Product sampling� Free give-away – Calendars, HDPE Hand bags,

Key chains, etc.

The fallout…The fallout…

� The execution of the strategy at the ground level needs attention.

� At the dealers place where the purchase decisions are taken, the brand/products lack visibility.

� The field staff lacked proper presentation skills.� There is no consistency in the brand communication.� The communication fails to excite the audience.� Age old corporate films were shown to the audience.� New media/promotions schemes are not explored.� Lastly, the present communication does not comply

to the changing expectations of the audiences.

The way ahead…The way ahead…

The great thing in this world is not so much where we are, but in what direction we are moving.

- Oliver Wendell Holmes

Customer AnalysisCustomer Analysis(The rural customer as we know)(The rural customer as we know)

Customer AnalysisCustomer Analysis

• Highly price sensitive• Ardent movie buffs• Easily influenced by word-of-mouth• Self-esteem/pride influences decision-making• Vibrant colors command their attention• Their associations are more visual dependant ie.

Symbols over names• Convenience is the other key word

Our learningOur learning

� The rural markets have become the buzz word for most of the FMCG majors because of the plethora of opportunity it offers.

� According to NCAER projections the absolute size of rural India is expected to be double that of urban India by 2007.

� To tap this great potential, many companies are busy employing cutting edge marketing tools.

� Coke,having recognized the importance of distribution doubled the number of its outlets from 80,000 to 1,60,000 in 2003.

Our learning…Our learning…

� CavinKare Products as a part of live demonstrations is getting the villagers’ hair washed and dyed en masse.

� The rural retailer influences 35% of all the purchase occasions.

� In such a case occupying more shelf space and developing a privileged relationship with the retailer is a source of competitive advantage for a marketer.

� The rural-urban gap is melting. Most of the villagers have urban aspirations.

With the changing expectations of With the changing expectations of the consumers, it becomes the consumers, it becomes

imperative for a brand to re-look imperative for a brand to re-look at its communication for growth.at its communication for growth.

A new perspective towards communicationA new perspective towards communication

The Tasks on HandThe Tasks on Hand� Add an aura to the GromorGromor motherbrand and

enthuse consumers.� Brand the products. � Develop strategy for GromorGromor to straddle the sub

brands � Create awareness for the new brands.� Impart brand differentiation through rational,

functional and emotional benefits.� Overcome the communication clutter, increase

SOV.� Get into the consideration set of the customers in

the low priority markets.

Branding the products…Brand ArchitectureBrand Architecture

ConceptConcept

NomenclatureNomenclature

Brand Name & MnemonicBrand Name & Mnemonic

Format & PackagingFormat & Packaging

Testing amongst TGTesting amongst TG

Fine tuning based on the response

Testing amongst TGTesting amongst TG

Freezing the PackagingFreezing the Packaging

What should the What should the brand name convey?brand name convey?

“A brand that captures your mind gives behavior. A brand that captures your heart gains commitment.”

- Scott Talgo, brand strategist

Key Consumer BenefitsKey Consumer Benefits

� More Yield (Functional benefit)� More Wealth &� More Happiness (Emotional benefit)� Plus the promise / heritage of the GromorGromor brand.

(Credibility)

Which means…Which means…

� The brand names for the products should hold relevance to the benefits offered.

� It must trigger the brand salience and its USPs.� Should convey cheerfulness.� Must be easily understood and remembered.� It should trigger inquisitiveness and attempt to bring

about an attitudinal change.

Our Brand Our Brand Recommendations...Recommendations...

Rational for the brand namesRational for the brand names

� Each brand name encapsulates the Gromor brand promise of more growth, and thus more prosperity.

� Each name cues in this promise by using an easy-to-understand Sanksrit word that cuts across all present and prospective markets.

� Each name transcends features to focus on the product benefit by touching an emotional chord in the typical consumer of rural India.

The Packaging‘Jo Dikhta hai wohi bikta hai’

Why emphasize on bag designs?

� The farmers’ purchase decisions are executed at the sales floor.

� Attractive bag designs will have major influence on the purchase decisions.

� Helps in better retention of the brand names / the bag designs.

� Aesthetic bag designs help in breaking the clutter.

� The utility of the bags for the farmers also increases.

The Communication

Objective

Desired Audience ResponseDesired Audience Response

ThinkThink : GromorGromor ‘sub brand’ is the best suited fertilizer for my crop.

Feel Feel : With Gromor Gromor I can be assured of better yield and good times.

DoDo : Ask for GromorGromor brand of fertilizers at the dealers place, buy them & spread positive word of mouth.

TheTheCommunication Communication

StrategyStrategy

“ In the factory we manufacture lipsticks, but it the market we sell hope.”

- Charles Revlon

The Strategy…The Strategy…� Avoid the product-oriented trap of viewing

communication.� Mend the traditional teaching of selling only rational

benefits.� Start with an understanding of what customers

expect and centre our strategy around it.� Approach the audience on the emotional and self-

concept plank, blended with the product benefits.� Create real differentiation by emphasis on total

brand experience.� Engage the audience through never-before used

creative & media.� Case in point – FMCG brands.

Brand PositioningBrand Positioning – Who am I?

I am a trustworthy fertilizer to help you maximize your yield

Advertising Proposition- Why buy me?

Gromor Gromor gives maximize maximize yield brings mor mor wealth mor mor happiness.

Brand PersonalityBrand Personality

� Down to earth� Leader in its own right� Trustworthy� Capable of delivering in any circumstances� Popular by virtue of its benefits.

Creative Strategy - ICreative Strategy - I

Driving a category & owning a territoryDriving a category & owning a territory� Promote Gromor Gromor as the market leader – AP’s

leading fertilizer manufacturer.� Been there in the market since ages, hence

understands the needs of the customers better and manufacturers products accordingly.

� Will help launching the sub-brands by the virtue of their USPs.

Creative Strategy - IICreative Strategy - II

Endorsement RouteEndorsement Route� The idea is to get empathy levels built with the

common man.� Credibility, authenticity and economy would be the

key.� This route will instigate positive word-of-mouth,

which is the key factor the awareness of any rural brand.

Creative Strategy - IIICreative Strategy - III

Slice of life RouteSlice of life Route� To covey the rational, emotional and self-expressive

benefits through dramatization.� Curiosity can be created through the message.� Helps in higher retention of the message.

Extending the Extending the communication to other communication to other

stakeholdersstakeholders

The StakeholdersThe Stakeholders

Association of Association of ManufacturersManufacturers

FarmersFarmers

Suppliers of Suppliers of Raw MaterialRaw Material

DealersDealers

EmployeesEmployees

MediaMediaOther Other

FacilitatorsFacilitators

ShareholdersShareholders

Bankers/CreditorsBankers/CreditorsGovernment BodiesGovernment Bodies

The The Media MixMedia Mix

Mode of CommunicationMode of Communication

PrintPrint� Press � Magazines (Specialized and popular)

BroadcastBroadcast� Television � Radio

Mode of Communication…Mode of Communication…Outdoor Outdoor � Hoardings (mobile hoardings)� Bus Shelters� Wall painting esp. painting the walls of the wells� Posters� Shop fascia / shutters / front gates� Inflatables� CFL trucks, mopeds, jeeps, Audio/Video vans� Tree guards / up-keeping the Municipal parks� Banners� Gantries� Cinema slides� Kiosks on electric poles

Mode of Communication…Mode of Communication…

Direct MarketingDirect Marketing� Direct mailers� Newsletter / In-house journals� Brochures

InternetInternet� Website� Emails marketing

Mode of Communication…Mode of Communication…EventsEvents� Puppet shows� Competitions� Farmer meetings� Participation in village ‘Haats’� Sponsorships

In-StoreIn-Store� Merchandising of Stocks� Display stands� POPs� Buntings / Streamers

Banner Stand (POP)

Trolley Design

Buntings / Festoons

Buntings / Festoons

Buntings / Festoons

Buntings / Festoons

Mode of Communication…Mode of Communication…

Dealer PromotionsDealer Promotions� Dealers Meeting

� Product launch meetings � Sales training workshops� Sales meetings

� Dealer certificates� Credit arrangements � Reward systems� Contests� Table calendars� T-shirts & other complimentary articles

Mode of Communication…Mode of Communication…Field PromotionsField Promotions� New Corporate film for the A/V vans� Dress code for the field staff� Identity cards for the field staff� Detailing book for the sales staff� Pamphlets /Leaflets� Flip charts

OthersOthers� Stickers� Mouse pads

Thank you.